UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03459

Penn Series Funds, Inc.

(Exact name of registrant as specified in charter)

600 Dresher Road

Horsham, PA 19044

(Address of principal executive offices) (Zip code)

Robert J. DellaCroce

Penn Series Funds, Inc.

600 Dresher Road

Horsham, PA 19044

(Name and address of agent for service)

Registrant’s telephone number, including area code: (215) 956-8256

Date of fiscal year end: December 31

Date of reporting period: June 30, 2014

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public.

A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.

Item 1. Reports to Shareholders

Dear Investor:

Thank you for your continued affiliation with The Penn Mutual Life Insurance Company. The confidence and trust you place in us reaffirms our commitment to helping policyholders take advantage of all life’s possibilities. We also take pride in being a financially strong mutual insurance company that delivers on our promises, and I’m very pleased to bring you the following capital markets summary. Please remember that regardless of what the markets may bring, short-term performance changes should not distract you from your long-term financial plan, and it’s a good idea to meet with your investment professional regularly to make sure that your asset allocation remains on target.

Stocks moved higher during the second quarter of 2014, adding to first-quarter gains and setting new highs in June. Equities rose despite the U.S. economy’s weather-driven contraction in the first quarter, geopolitical strains, worries about Europe’s economy and the Federal Reserve’s continued tapering of its asset purchases. Market volatility has remained very low and continues to fall in almost every major market. Falling volatility has increased risk appetites and has been a primary driver of the gains in the equity markets. From a sector perspective, Utilities, considered a defensive sector, had the strongest returns and more cyclical sectors such as Consumer Discretionary, Industrials, and Telecommunications experienced relatively weaker returns during the first half of the year. In this environment, the U.S. stock market, as measured by the Wilshire 5000 Equity Index, returned a solid 7.00 percent during the six month period ending June 30.

On a relative basis, mid and large capitalization stocks provided higher returns than did small capitalization stocks during the six month period ending June 30. Mid capitalization stocks, as measured by the Russell Midcap Index, returned 8.67 percent and large capitalization stocks, as measured by the Russell 1000 Index, returned 7.27 percent, while small capitalization stocks, as measured by the Russell 2000 Index, returned 3.19 percent. From a style perspective, value stocks performed in line with growth stocks in the large market capitalizations, while value stocks outperformed growth stocks in the small and mid capitalization ranges. Some of the relative outperformance within value stocks can be attributed to the relatively strong performance within the Utilities sector. Lastly, one of the best performing domestic equity asset classes for the first six months of the year was Real Estate Investment Trusts (REITs) as measured by the FTSE NAREIT Equity REIT Index’s return of 17.66 percent. REITs also have the distinct honor of having the best relative performance over the last five years with an annualized return of 23.52 percent.

International markets, both developed and emerging, ended the six month period slightly behind U.S. equities. Developed international stocks, as measured by the MSCI EAFE Index, returned 5.14 percent while emerging market stocks, as measured by the MSCI Emerging Markets Index, fared a bit better with a return of 6.32 percent. Emerging markets have rebounded quite nicely from their losses in 2013 as the improving U.S. economy, another round of stimulus in Europe, and signs of stabilization in China lifted confidence in the global economic outlook. While geopolitical concerns will continue to stay in the headlines creating potential risk, the market has remained resilient to date. Numerous key elections will take place in the second half of the year and are worth keeping a close eye on.

Investment-grade fixed income securities underperformed high yield bonds during the first six months of the year. Investment-grade bonds, as measured by the Barclays Capital U.S. Aggregate Index, returned 3.93 percent and the Credit Suisse High Yield Bond Index returned 5.55 percent. Long maturity Treasury yields continued to fall during the second quarter following similar declines in the first quarter due to strong demand from foreign central banks and pension funds. The rally in Treasury bonds has been a surprise to many market participants as consensus forecasts were for Treasury yields to rise in 2014. This rally has helped most fixed income sectors generate strong returns. The Federal Reserve continued its policy of gradual tapering of its quantitative easing program that commenced at the start of the year. However, they also stressed that rates will remain low for a long period of time.

Once again, we thank you for the privilege of serving your financial needs and encourage you to work closely with your financial professional to continue to explore your options throughout all of life’s stages.

Sincerely,

David M. O’Malley

Chief Operating Officer

The Penn Mutual Life Insurance Company

President

Penn Series Funds, Inc.

Source: This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are subject to change as subsequent conditions vary. All economic and performance information is historical and not indicative of future results.

Table of Contents

Penn Series Funds, Inc. Semi-Annual Report

Management’s Discussion of Fund Performance (Unaudited)
Limited Maturity Bond Fund	2
Quality Bond Fund	3
High Yield Bond Fund	4
Flexibly Managed Fund	5
Balanced Fund	6
Large Growth Stock Fund	7
Large Cap Growth Fund	8
Large Core Growth Fund	9
Large Cap Value Fund	11
Large Core Value Fund	13
Index 500 Fund	15
Mid Cap Growth Fund	16
Mid Cap Value Fund	18
Mid Core Value Fund	19
SMID Cap Growth Fund	21
SMID Cap Value Fund	23
Small Cap Growth Fund	24
Small Cap Value Fund	26
Small Cap Index Fund	28
Developed International Index Fund	29
International Equity Fund	31
Emerging Markets Equity Fund	33
Real Estate Securities Fund	35
Aggressive Allocation Fund	37
Moderately Aggressive Allocation Fund	38
Moderate Allocation Fund	39
Moderately Conservative Allocation Fund	40
Conservative Allocation Fund	41
Important Information about Fund Expenses	42
Schedules of Investments	45
Statements of Assets and Liabilities	162
Statements of Operations	170
Statements of Changes in Net Assets	174
Financial Highlights	182
Notes to Financial Statements	197
Disclosure of Portfolio Holdings	217
Voting Proxies on Fund Portfolio Securities	217
Shareholder Meeting Voting Results	218
Board Approval of Investment Advisory and Sub-Advisory Agreements	219

1

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Limited Maturity Bond Fund

The Penn Series Limited Maturity Bond Fund returned 0.44% for the six-month period ending June 30, 2014, compared to the 0.56% return of its benchmark, the Barclays U.S. Government/Credit 1-3 year Bond Index.

In the current environment, the traditionally more conservative nature of the management of the Fund has proved to be a headwind to relative peer performance.

The U.S. economic news was mixed during the first six months of the year. Severe winter weather during the first quarter led to the weakest quarterly Gross Domestic Product (GDP) since the credit crisis. This weak first quarter growth appeared at odds with steadily improving employment statistics as the unemployment rate is nearing 6%. Investors have returned to the emerging markets after this year started with renewed fears of faltering economies and political unrest. Emerging market equity and debt investments have recovered and now are among the best performing asset classes during the first half of 2014. While heightened geopolitical concerns abated during the second quarter, tensions in Ukraine and the Middle East represent one of the primary risks to the current low volatility environment.

During the first half of the year, we started to gradually reposition the portfolio in order to increase the Fund’s yield. We added BBB industrial bonds in the healthcare, consumer non cyclical, energy and pipeline, and telecommunications sectors that we felt traded at attractive valuations. Domestic money center bank and brokerage firms were also selectively added due to underperformance versus similarly rated industrials throughout the year and their continued improvement in tier 1 capital ratios and overall asset quality. We also started positions in higher quality high yield companies that we view as potential cross over (into investment grade) situations. The high yield purchases were concentrated in companies with good business fundamentals, solid market positions and scale, moderately levered balance sheets, and a reasonable probability of a ratings upgrade over the next 2-3 years. On the higher quality side, we purchased AAA and AA CMBS securities which provided attractive spread with minimal risk.

We will continue to look for value added investment opportunities during this period of low interest rates and market volatility while maintaining a bias towards high credit quality and conservative duration risk.

Independence Capital Management, Inc.

Investment Adviser

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Corporate bonds		53.8	%
U.S. Treasury Obligations		20.0	%
Commercial Mortgage Backed		13.0	%
Asset backed		12.0	%
Residential Mortgage Backed		1.2	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments.

2

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Quality Bond Fund

The Penn Series Quality Bond Fund returned 3.53% for the six-month period ending June 30, 2014, compared to the 3.93% return of its benchmark, the Barclays Capital U.S. Aggregate Bond Index.

Our bias towards higher quality holdings compared to the benchmark was the primary factor behind the relative underperformance for the first half of 2014.

The U.S. economic news was mixed during the first six months of the year. Severe winter weather during the first quarter led to the weakest quarterly Gross Domestic Product (GDP) since the credit crisis. This weak first quarter growth appeared at odds with steadily improving employment statistics as the unemployment rate is nearing 6%. Investors have returned to the emerging markets after this year started with renewed fears of faltering economies and political unrest. Emerging market equity and debt investments have recovered and now are among the best performing asset classes during the first half of 2014. While heightened geopolitical concerns abated during the second quarter, tensions in Ukraine and the Middle East represent one of the primary risks to the current low volatility environment.

The Quality Bond Fund has shifted its exposure to duration or interest rate risk in response to the unexpected decline in interest rates during the previous six months. We sold longer-term bonds during the second quarter and reduced the Fund’s duration to a level below its benchmark. While the Federal Reserve has continued to taper the amount of bond purchases every month, foreign central banks have been picking up the slack and buying U.S. Treasuries in response to historically low yields across many developed country bond markets. We believe interest rates in the U.S. will gradually rise for the remainder of the year in response to an improving outlook for the domestic economy.

During the second quarter, we reduced our exposure to Federal Agency mortgage-backed securities (MBS) and purchased ten year Treasury Inflation-Protected Securities (TIPS). TIPS offer the opportunity for better returns in the increasingly likely event the Federal Open Market Committee’s (FOMC) easy monetary policy leads to inflationary pressures. The Fund has also increased its holdings of bonds at the front end of the yield curve with attractive return potential. Enhanced Equipment Trust Certificates (EETC), airline debt secured by aircraft, represents one of these opportunities.

During this period of low interest rates and volatility, we will continue to look for value added investment opportunities while maintaining our tilt towards high credit quality and a conservative duration risk profile.

Independence Capital Management, Inc.

Investment Adviser

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
U.S. Treasury Obligations		29.7	%
Residential Mortgage Backed		25.1	%
Corporate Bonds		22.3	%
Asset Backed Securities		13.1	%
Futures		5.2	%
Commercial Mortgage Backed		2.9	%
Municipal Bonds		1.7	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments.

3

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

High Yield Bond Fund

The Penn Series High Yield Bond Fund returned 5.38% for the six-month period ending June 30, 2014, compared to the 5.55% return of its benchmark, the Credit Suisse High Yield Bond Index.

The Fund underperformed the Credit Suisse High Yield Index during the six-month period, as credit selection was negative in the retail and utilities sectors. Conversely, solid credit selection in the media/telecom and energy sectors aided relative results during the period.

High yield bonds posted solid returns during the six-month period. The market performed well as fundamental tailwinds remained in place, including limited defaults, healthy earnings and free cash flow generation, and low financing costs. However, a recent isolated event led to an uptick in the overall default rate. High yield bonds are also enjoying a meaningful amount of technical support as the persistent search for yield continues to drive capital into the asset class. Strong technicals have pushed below investment-grade bond yields to historically low levels and stretched valuations to some extent. Returns were positive across all major industries and credit quality segments over the last six months, with higher-rated securities outperforming CCC rated securities.

Although year-to-date issuance is behind last year’s record-setting pace, a substantial pickup in merger and acquisition (M&A) financing helped narrow the difference. Underwriters continued to test the limits on new deal terms, keeping our investment team highly cautious and selective. On the other hand, issuers have generally allocated proceeds from recent debt offerings in a prudent manor, with a keen focus on interest expense and leverage.

As expected, Energy Future Holdings (formerly known as TXU) filed for Chapter 11 in April. J.P. Morgan’s par-weighted U.S. high yield bond default rate increased significantly from 0.61% to 2.15% in April as a result, but the market reaction was largely muted because this event was well telegraphed.

Negative credit selection in the retail sector was partly driven by our position in Gymboree, a children’s apparel retailer. This issuer has experienced weakness following a series of disappointing earnings reports and poor forward guidance. However, we eliminated this holding during the period because the company’s turnaround strategy was not gaining meaningful traction.

A combination of positive credit selection and an overweight allocation in the media/telecom sector aided relative results. We have skillfully positioned our portfolio to benefit from M&A activity in the broad media space. Many of the recent transactions have been strategic in nature and have included an equity/cash investment component, which is positive for bondholders.

We believe capital appreciation potential is limited for the remainder of this year, particularly in the U.S. where most bonds are trading at a premium to par value. Technical factors have pushed valuations to less compelling levels in certain segments of the market, namely higher-rated bonds. Nonetheless, increased strategic M&A activity as well as compelling stories in Europe and emerging markets are still providing us with ample active management opportunities.

Although valuations are somewhat stretched, underlying high yield fundamentals remain sound. Most issuers have focused on improving their balance sheets over the past several years rather than releveraging, taking advantage of abundant liquidity and low capital costs. Moreover, the limited amount of bond maturities over the next two years is highly supportive of the low-default environment.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Bonds
BBB/BB Rated & Above		1.4	%
BB Rated		21.4	%
BB/B Rated		14.6	%
B Rated		36.0	%
B/CCC Rated		10.3	%
CCC and Below		13.1	%
Not rated		1.4	%
Equity securities		1.8	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments.

4

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Flexibly Managed Fund

The Penn Series Flexibly Managed Fund returned 6.94% for the six-month period ending June 30, 2014, compared to the 7.14% and 4.22% returns of its benchmarks, the S&P 500 Index and the Merrill Lynch Corporate/Government Index, respectively.

For the six-month period, the stock segment of the Fund outperformed the S&P 500 Index, while our fixed income holdings ended in line with the S&P 500 Index. Consumer Discretionary, health care, and utilities all boosted relative performance, while financials, industrial and business services, and energy detracted on a relative basis.

U.S. stocks rose in the second quarter of 2014, adding to first-quarter gains and lifting large-cap indexes to new all-time highs in June. Equities climbed amid signs that the economy was recovering from the economic contraction in the first quarter, which was driven in part by unusually harsh winter weather. Corporate merger and acquisition activity was also encouraging, as were signs that Russia wants to de-escalate tensions with Ukraine. Investors were undeterred by the Federal Reserve’s continued tapering of its asset purchases or by rising oil prices late in the quarter in response to a sharp increase in sectarian violence in Iraq. Domestic bonds produced moderate gains in the second quarter as longer-term Treasury yields declined, despite signs of rising inflation.

Our equity weight declined, as we believe that equity valuations are high relative to historical averages and are being driven by multiple expansion rather than earnings growth. Nevertheless, we found select buying opportunities in companies with defensive characteristics, adding to our holdings in energy, financials, and consumer discretionary, while trimming consumer staples and utilities. We also continued to maintain significant exposure to covered calls, which give us the benefits of owning a stock while providing downside protection. Our cash allocation increased as we trimmed our equity holdings on strength.

Our fixed income weight remained basically the same, as we found fewer attractive risk/reward opportunities. We trimmed our exposure to bank loans and mortgages, while increasing our weights in high-yield securities (currently our largest fixed income asset class) and U.S. Treasuries, as well as select high-quality corporate bonds. Declining spreads made bank loans less attractive, and newer issues do not always have the characteristics that initially attracted us to the asset class.

On a relative basis, consumer discretionary was a leading contributor due to stock choices, including AutoZone. In utilities, we benefited from our position in PG&E. Stock selection in both the financials and the industrials and business services sectors detracted.

After a year of nearly uninterrupted strength in the U.S. equity market, we are tempering our expectations for continued gains. The U.S. economy continued its pace of moderate growth over the past few years, but returns appear to have outpaced corporate fundamentals. We would therefore not be surprised to encounter a cyclical pullback in the near term.

Across asset classes, we are finding less compelling value in equities than we did a year ago. We continue to look for opportunities to add to equity positions on market pullbacks. Within fixed income, we took the opportunity to add to U.S. Treasuries along with higher-yielding securities as interest rates rose. With the considerable market advance, we positioned the portfolio defensively as a reflection of our commitment to capital preservation. As always, we remain focused on finding the best risk-adjusted opportunities across the various asset classes.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Fixed Income		32.1	%
Financials		14.1	%
Health Care		12.1	%
Industrials		9.9	%
Consumer Discretionary		9.2	%
Technology		7.8	%
Consumer Staples		5.6	%
Utilities		4.6	%
Energy		3.4	%
Telecommunications		0.8	%
Materials & Processing		0.4	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

5

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Balanced Fund

The Penn Series Balanced Fund returned 5.44% for the six-month period ending June 30, 2014, compared to the 7.14% and 3.93% returns of its benchmarks, the S&P 500 Index and the Barclays Capital U.S. Aggregate Bond Index, respectively.

The Balanced Fund is comprised of a target allocation of 60% to an equity fund and 40% to a fixed income fund. The equity allocation of the Fund is comprised of the Penn Series Index 500 Fund, which seeks a total return that corresponds to that of the S&P 500 Index. The fixed income allocation of the Fund consists of an allocation to the Penn Series Quality Bond Fund.

At the broad asset class level, the Balanced Fund’s equity allocation performed in line with its broad equity benchmark the S&P 500 Index for the year-to-date period. The Fund’s fixed income allocation slightly underperformed the Barclays Capital U.S. Aggregate Bond Index for the year-to-date time period. Weighing on the fixed income allocation of the Fund was the more conservative composition of the underlying individual fixed income fund versus the broad market Index.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/14

Index 500	60.0	%
Intermediate Bonds	40.0	%
	100.0	%

6

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Growth Stock Fund

The Penn Series Large Growth Stock Fund returned 2.51% for the six-month period ending June 30, 2014, compared to the 6.31% return for its benchmark, the Russell 1000 Growth Index.

The Fund delivered positive returns for the six months of 2014 but lagged against the benchmark. Stock selection was the main reason for relative underperformance, but group weighting was also negative. Information technology, energy, and consumer discretionary were the largest relative detractors. Health care relatively outperformed.

Investors shook off negative factors affecting markets in the first half of 2014, and U.S. stocks recorded strong gains. Downside concerns included an unexpectedly sharp economic contraction in the first quarter and less accommodative monetary policy from the Federal Reserve. Investors looked past uncertainties and focused on the potential for renewed economic growth in the remainder of the year. Mid- and large-cap stocks outpaced small-cap shares by a wide margin during the period. According to Russell indexes, value stocks outperformed growth stocks across all market capitalizations, particularly among mid-cap shares.

Information technology was the leading relative detractor, due to stock selection. A combination of foreign-exchange headwinds and a slowing of cross-border volumes weighed on shares of global payments networks MasterCard and Visa. An underweight to Apple hurt relative performance. Shares were up sharply during the period as investors anticipated upcoming product cycles and were receptive to an increased buyback and dividend, as well as a 7-for-1 stock split. The iPhone 6 is expected to come out later this year, potentially driving a large upgrade cycle.

Energy underperformed due to stock selection and underweighting the strongest performer in the benchmark. Shares of Range Resources were up during the period but lagged the broader energy sector after missing earnings estimates due to lighter oil and natural gas production. We believe Range Resources is well positioned to benefit from rising natural gas production in the U.S., a strong management team, attractive acreage in the Marcellus Shale region, and a lower cost structure relative to peers.

Consumer discretionary detracted on significant overweighting of the worst performer in the Russell benchmark, more than offsetting favorable stock selection.

Health care was the leading outperformer, driven by stock selection. McKesson benefited from continued strength in generic drug pricing and closed its acquisition of pharmaceutical and health care product manufacturer Celesio AG, expanding its global footprint. The company also secured a generic drug distribution agreement with Rite Aid, the third-largest drug retailer in the United States. Shares of Vertex Pharmaceuticals soared on news that the company’s cystic fibrosis treatment met its primary endpoint in Phase III trials. The company now plans to submit for regulatory approval in both the U.S. and Europe. IDEXX Laboratories develops, manufactures, and distributes products and services for the animal veterinary, livestock and poultry, water testing, and dairy market industries. Increased demand for veterinary services and corresponding products in the period aided the firm.

The U.S. economy should grow modestly over the remainder of 2014, supported by diminished fiscal headwinds, improved labor markets, and healthier consumer finances. Overall, we believe the bull market that began five years ago has further room to run. Valuations appear reasonable from a historical perspective, and market performance should be in line with moderate improvements in corporate earnings growth.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Portfolio Composition as of 6/30/14

	Percent of Total  Investments1
Consumer Discretionary		27.8	%
Technology		23.6	%
Health Care		15.4	%
Industrials		13.9	%
Financials		7.9	%
Energy		3.7	%
Consumer Staples		3.4	%
Materials & Processing		3.3	%
Telecommunications		1.0	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

7

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Cap Growth Fund

The Penn Series Large Cap Growth Fund returned 4.58% for the six-month period ending June 30, 2014, compared to the 6.31% return for its benchmark, the Russell 1000 Growth Index.

Early in the period, markets were forced to contend with some unexpected weakness in the U.S. economy due largely to weather-related interruptions to hiring and spending plans and emerging market stresses due to imbalances and stagflationary conditions in certain emerging market countries. Equities and credit markets quickly found their footing and recovered all early-year declines, helped, in part, by the conclusion that there would be no major change in U.S. monetary policy as a result of the nomination of Janet Yellen as the new Fed Chair for a term beginning in early 2014.

Toward the middle of the period, political instability in the Ukraine briefly caused market jitters where tensions escalated following a change in government and Russia’s annexation of Crimea. Once again, the setback was short-lived as the economy regained its footing, helped in part by central bank stimulus, notably by the European Central Bank. Also, toward the end of the period, sectarian violence in Iraq and the potential threat to oil production and crude prices appeared to have become a modest concern for investors, but not enough to cause any meaningful pull-back in the equity markets as the broad U.S. equity indexes traded near their all-time highs by the end of the period.

Stock selection in the financial services sector detracted from performance relative to the Index. Overweight positions in weak performing global payments technologies companies MasterCard and Visa further hampered relative returns.

A combination of stock selection and underweight position in the technology sector dampened relative performance. An underweight position in computer and personal electronics maker Apple and not holding software giant Microsoft and social media site Facebook weighed on relative results as the companies posted solid returns during the period.

Elsewhere, the Fund’s overweight positions in outsourcing services provider Accenture, Media Company Discovery Communications, and dental products manufacturer Dentsply detracted from relative performance.

Additionally, holdings of consumer goods producer Procter & Gamble and not holding diversified energy products supplier Halliburton hurt.

Stock selection, and to a lesser extent, underweight allocation to the retailing sector contributed to relative performance. The Fund’s avoidance of poor-performing online retailer Amazon.com aided relative performance.

In other sectors, holdings of oilfield services provider Schlumberger, diversified electrical power management company Sensata Technologies, semiconductor manufacturer Taiwan Semiconductor, and overweight position in health care company Allergan supported positive performance. Holdings of strong-performing alcoholic beverage company Beam and overweight positions in nutrition company Mead Johnson Nutrition, Entertainment Company Walt Disney, and health care company Johnson & Johnson contributed to relative performance. Not holding airline company Boeing benefited relative performance as the stock underperformed the benchmark during the reporting period.

Independence Capital Management, Inc.

Investment Adviser

MFS Investments

Investment Sub-Adviser

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Technology		25.6	%
Consumer Discretionary		17.5	%
Healthcare		15.3	%
Consumer Staples		14.9	%
Industrials		13.7	%
Materials & Processing		4.8	%
Financials		4.4	%
Energy		3.8	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

8

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Core Growth Fund

The Penn Series Large Core Growth Fund returned 2.96% for the six-month period ending June 30, 2014, compared to the 6.31% return for its benchmark, the Russell 1000 Growth Index.

Security selection within the industrial sector contributed to returns as our investment thesis surrounding the airline industry continues to be validated. Delta Air Lines and American Airlines gained approximately 41% and 34%, respectively, as traffic remained strong, pricing remained rational, and margins continued to improve. Furthermore, investors continued to gain confidence that these improvements will be more sustainable than many originally thought. Given the re-rating of the airlines, however, we are paying close attention to valuation. Lastly within industrials, our holding within United Rentals was a strong contributor. The company is well positioned to benefit from both a cyclical uptick in construction activity, as well as a secular shift towards renting, instead of purchasing, large scale equipment.

Driven by our holding in Constellation Brands, positioning in the consumer staples sector again proved additive to returns. The manufacturer and distributor of alcoholic beverages was among the Fund’s largest contributors last year and is an excellent example of a “developing situation” within our portfolio construction methodology. Constellation continues to enjoy multiple growth opportunities from both strategic acquisitions and organic operational improvements. The company continues to produce strong organic growth and our conviction in the position remains high.

Security selection within the consumer discretionary sector also detracted from returns. Despite reporting solid first quarter results, shares of aftermarket automotive parts distributor LKQ Corporation came under pressure. The main source of weakness was the publication of an industry report questioning the sustainability of the company’s growth rate and acquisition accounting practices. We conducted our own evaluation of the company which gave us confidence that the issues raised were not valid. We maintained our belief that the company is well positioned to grow in both domestic and international markets. Our conviction is driven by the company’s sophisticated operating systems that should continue to bring technological relevance to the auto repair space. Additionally within the sector, traditional retailers suffered from a mix of both weather related

weakness and company specific concerns. Shares of consumer electronics retailer Best Buy declined when holiday sales proved to be weaker than expected given a highly promotional environment. We owned Best Buy as a developing situation, expecting new management’s supply chain improvements to lead to improving margins. While this played out the second half of 2013, the highly promotional holiday pricing and declining store traffic from online competition proved to be too much to overcome. With the operational improvement thesis now being overshadowed by the headwinds of the increasingly competitive environment, we sold our position in the stock.

Among financial holdings, Intercontinental Exchange experienced weakness as lower-than-expected trading volumes driven by falling market volatility and interest rates pressured results. In addition, investor confusion regarding the divestiture of an ancillary business and the near-term impact on earnings estimates weighed on the stock. We view these as transitory issues and believe the company continues to execute well. Intercontinental Exchange should benefit from significant merger synergies, balance sheet restructuring, and a recovery in trading volumes in the coming months. Another financial stock that detracted from performance during the quarter was Affiliated Managers Group. Despite solid financial performance and an increased growth outlook from management, the investment management company declined as investor uncertainty rose amidst a number of geopolitical events. AMG remains well positioned with best in class asset flows and ample opportunity for additional accretive acquisitions and we maintain conviction in the stock.

Independence Capital Management, Inc.

Investment Adviser

Wells Capital Management

Investment Sub-Adviser

9

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Technology		25.2	%
Consumer Discretionary		23.5	%
Healthcare		14.7	%
Industrials		11.0	%
Financials		10.6	%
Energy		7.2	%
Consumer Staples		3.8	%
Materials & Processing		2.2	%
Telecommunications		1.8	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

10

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Cap Value Fund

The Penn Series Large Cap Value Fund returned 6.71% for the six-month period ending June 30, 2014, compared to the 8.28% return for its benchmark, the Russell 1000 Value Index.

Stock selection in the information technology sector, which lagged mostly due to weak performance from AOL Inc and Motorola Solutions, was the primary reason for the underperformance. Strong stock selection in the healthcare and energy sectors offset some of the returns.

The main individual detractors from performance included AOL, State Street Corporation and Citigroup. AOL, a web services company, reported poor earnings driven by higher-than-expected costs. This was the cause of AOL’s underperformance, as both traffic acquisition costs and marketing activities to boost search queries weighed on the company’s margins. State Street, an institutional financial services company, has languished due to falling interest rates and general lackluster trading activity across markets over the time period. Citigroup, a diversified financial service holding company, also underperformed, as they failed to pass the Federal Reserve’s (the Fed’s) stress test in late March.

The individual holdings that contributed most to overall performance were Forest Laboratories, Covidien and Wells Fargo & Company. Medtronic’s offer to purchase Covidien, a medical equipment company, for a combination of cash and stock led to a revaluation in the shares. Forest Laboratories, a pharmaceutical company, was our best performing stock in the Fund. As a result of Forest Laboratories’ strong balance sheet and decent pipeline, they agreed to be acquired by Actavis Plc. Wells Fargo, a diversified financial services company, outperformed due to better-than-expected results and higher-than-anticipated capital return (dividend & buyback) announced with stress test results late in the first quarter.

Year-to-date we made a few changes to the Fund. Most recently, we started two new positions in Symantec, an infrastructure software company, and Ingersoll Rand, a diversified global equipment company. A multi-year laggard prior to our purchase, we believe Symantec is an inexpensive stock that has multiple pathways to revalue higher. We believe that as a new management team is established, disruption from the firm’s massive sales force changes start to ebb, and their new products roll-out, that the company’s financial performance should begin to improve. In our view, Ingersoll-Rand is positioned to grow

sales and margins as economic trends continue to strengthen.

As we enter the third quarter, the equity markets continue their upward drift. Much of the financial press has been discussing the likely rebound in gross domestic product (GDP) in the third quarter versus the severe weather impacted second quarter, which posted -2.9% GDP growth. In addition, employment continues to slowly improve printing 6.1% unemployment in the latest report, the lowest it has been since 2008. As the economy shows signs of picking up, there are increased discussions of inflation and a rise in interest rates. We believe it is not a matter of “if” but “when” rates will rise. The stronger the economy, the more likely the Fed will continue to diminish its bond buying, thus allowing rates to rise.

While we never like to lag our benchmark in any time period, we feel very comfortable with our holdings and how the Fund is positioned. We do not view equity markets as overvalued, particularly when compared to the level of interest rates and other asset classes. We do believe that geopolitical issues and other worries will continue to create periods of angst. It is these times that can create good investment opportunities for the long term, and we will continue to take advantage of these opportunities.

Independence Capital Management, Inc.

Investment Adviser

Loomis, Sayles & Co.

Investment Sub-Adviser

11

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Financials		24.5	%
Healthcare		15.2	%
Consumer Discretionary		12.7	%
Energy		12.2	%
Industrials		10.2	%
Technology		10.1	%
Consumer Staples		5.3	%
Materials & Processing		4.0	%
Utilities		3.4	%
Telecommunications		2.4	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

12

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Core Value Fund

The Penn Series Large Core Value Fund returned 8.30% for the six-month period ending June 30, 2014, compared to the 8.28% return for its benchmark, the Russell 1000 Value Index.

Major world equity markets advanced over the first six months of 2014, supported by continued low interest rates, which has created ample liquidity, and some signs of global economic improvement. In the U.S., a gradually strengthening economy along with the Federal Reserve’s (the Fed) renewed commitment to low interest rates helped drive key equity indexes to multiple record highs during the period. For the most part, investors shrugged off the first quarter economic contraction, which was largely blamed on harsh winter weather, and drew confidence from several economic reports, including further labor and housing market gains, rising industrial production and stronger auto sales.

In mid-March, as expected, the Fed continued to “taper” its monthly bond buying stimulus program. Yet, new Fed chair Janet Yellen helped to unnerve markets with her comments regarding the Fed’s timetable for raising short-term interest rates, which some investors interpreted as signaling higher rates sooner than previously thought. A few weeks later, Ms. Yellen helped give stocks a boost with a speech reaffirming the Fed’s commitment to supporting the economy. In June, the outbreak of hostilities in Iraq sent stocks lower, but investors returned to equities a few days later after the Fed reiterated its pledge to maintain low interest rates and downplayed inflation fears. The major indexes quickly rebounded, with some reaching new highs, before falling back in the final week of the period.

Outperformance of lower quality stocks versus higher quality stocks presented a headwind to relative results, but was offset by the Fund’s strong stock selection results during the period. Overall, sector allocation had a slightly negative impact on the Fund’s relative performance.

The best performing Index sectors were utilities, information technology, and health care, while consumer staples, consumer discretionary, and industrials were the weakest-performing sectors. Within both the Index and the Fund, all 10 economic sectors delivered positive returns for the period.

In energy, overweight positions in independent exploration and production firms ConocoPhillips and Anadarko Petroleum benefited relative performance. Exposure to two takeover targets in the health care sector,

Shire and Covidien, aided relative performance. Other strong performing individual stocks included chemical company LyondellBasell Industries and Delta Air Lines.

In financials, overweight positions in financial services giants Citigroup and Bank America represented a drag on relative performance. Elsewhere, the Fund’s holding in Boeing, off-discount clothing retailer TJX, and electronic security provider ADT were among the largest detracting stocks during the period. From a sector allocation perspective, the Fund’s modest underweight to the strong-performing utilities sector detracted.

The Fed’s continued accommodative stance, the prospect of gradual economic improvement and many investors’ seeming willingness to buy stocks on short-term pullbacks have raised expectations for modest equity market gains in the coming months. However, investors will be keeping a close eye on equity valuations going forward, especially after Fed Chair Janet Yellen cautioned that elevated stock prices and low volatility may indicate excessive investor complacency. Along with valuation levels, investors will also be monitoring stocks’ reaction if second quarter corporate profits disappoint, or if U.S. inflation continues to edge higher and leads the Fed to signal a possible change in policy.

From a sector positioning perspective, the Fund held modest overweight exposures to energy and health care and slight underweights to utilities and consumer staples as of the end of the period.

Independence Capital Management, Inc.

Investment Adviser

Eaton Vance Management

Investment Sub-Adviser

13

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Financials		28.0	%
Energy		17.4	%
Healthcare		14.2	%
Industrials		9.9	%
Technology		9.6	%
Consumer Discretionary		8.3	%
Consumer Staples		4.8	%
Utilities		4.5	%
Telecommunications		1.8	%
Materials & Processing		1.5	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

14

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Index 500 Fund

The Penn Series Index 500 Fund returned 6.95% for the six-month period ending June 30, 2014, compared to the 7.14% return for its benchmark, the S&P 500 Index.

A disappointing January brought a number of chillier reports on global economic activity, and the first month of 2014 ended with U.S. stocks hesitating near two-month lows. A weak manufacturing reading in early February served to unnerve investors further, driving averages of larger U.S. equities to the worst levels since late October. But Janet Yellen, newly installed head of the U.S. Federal Reserve, came across as thoroughgoing and confident in her first opportunity to provide formal testimony before Congress. With policy continuity assured, investors used the remainder of February to lift the S&P 500^® back up and over the record levels at which it had traded near the end of 2013.

After demonstrating resilient outperformance since mid-summer of 2013, growth-oriented portfolios finally ran into serious resistance during March of 2014. Uncertainty about economic prospects was hardly the culprit, as the Federal Reserve felt confident enough in its outlook to expect a slightly sooner arrival of its first rate hike. Rather, the brilliant market successes of social media, cloud computing, internet security, and advanced medical technology seem to have attracted too much equity supply, either in the form of new offerings from untested companies or of insider selling from firms already public. As momentum-oriented players recognized the imbalance, the last two weeks of March saw growth benchmarks give back roughly six months of leadership relative to value indexes.

During the first quarter of 2014, when economic activity often disappoints expectations, choppy equities and lower bond yields produced sector performance in the S&P 500 that featured reversals in some of the leading themes from 2013. Consumer discretionary, the top performer in 2013, became the weakest in early 2014, losing 2.8% for both March and the first quarter as a whole. A number of well-known retail names endured double-digit declines. The health care sector, also big in 2013, gave back 1.3% in March. Still, health care climbed 5.8% for the full first quarter, keeping the sector in second place on a year-to-date basis. One key winner was Forest Labs, whose shares climbed by more than 50% on a takeover bid from generic drug maker Actavis.

After discretionary and health care, the other eight S&P sectors scored positive returns in March, as well as for the first quarter as a whole. Utilities were the sleeper, gaining 3.4% in March and 10.1% since the start of 2014, as the surprising drop in bond yields renewed interest in these notable 2013 laggards. Another source of ample dividends, telecommunications services, led the way in March with a 4.8% advance, but that only brought its year-to-date result to a thin 0.5%. Financials added 3.2% in March as rising intermediate yields lent credence to an eventual hike in interest rates, and the sector’s first-quarter gain of 2.6% was fourth place out of ten. In third place was the materials sector, which used an in-line March result to gain 2.9% for the full first quarter, as several chemical names posted double-digit three-month gains. The energy and industrials sectors were slight outperformers in March, but laggards for the full quarter, and the same was true of consumer staples, which rebounded smartly in March from early 2014 losses. On the flip side was information technology, which only eked out a 0.3% March advance, but remains slightly ahead of the S&P on a year-to-date basis.

Independence Capital Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Technology		18.8	%
Financials		16.2	%
Healthcare		13.3	%
Consumer Discretionary		11.8	%
Energy		10.9	%
Industrials		10.5	%
Consumer Staples		9.5	%
Materials & Processing		3.5	%
Utilities		3.1	%
Telecommunications		2.4	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

15

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Cap Growth Fund

The Penn Series Mid Cap Growth Fund returned 5.22% for the six-month period ending June 30, 2014, compared to the 6.51% return for its benchmark, the Russell Midcap Growth Index.

Overall stock selection contributed strongly to relative performance during the first quarter, with selections within the technology and consumer staples sectors contributing the most to the Fund’s overall outperformance. Detractions to relative returns in the first quarter were small in amplitude and were from a diverse swatch of holdings within the financial services, consumer discretionary, and utilities sectors.

The single largest contributor to the Fund for the first quarter was Beam Inc. The company is a premium spirits brand in the consumer staples sector. Beam Inc. received a bid to be acquired by Suntory Holdings Limited at a 25% premium in the middle of January. After detracting in the fourth quarter, multi-core processing semiconductor company Cavium contributed nicely this quarter. NXP Semiconductors in the technology sector was the second largest contributor for the quarter. Within the consumer discretionary sector, Delta Air Lines, and Kate Spade provided positive contributions. Delta Air Lines, up 26% for the quarter, benefited from increased revenue as leisure travel was strong during the holiday season. Kate Spade, formerly the specialty retailer Fifth & Pacific, continued its outperformance from the fourth quarter and rose another 16% in the first quarter.

Stock selection in financial services hindered performance during the first quarter in relative and absolute terms although the magnitude was not great. After a double digit return in the fourth quarter IntercontinentalExchange Group, a leading operator of regulated exchanges and clearing houses, pulled back and was the largest detractor to the Fund.

The commentary provided above was from the former sub-adviser of the Fund, Turner Investments, who was the manager of the Fund until May 1, 2014.

During the second quarter, most sectors performed relatively in line with the Index, with four of the ten economic sectors outperforming the Index overall during the period. The four sectors, listed in order of performance, were telecommunications services, information technology, health care, and energy. The underperforming sectors during the period, listed in order of underperformance, were utilities, financials, industrials, consumer discretionary, materials, and consumer staples.

The Fund was overweight the information technology, industrials, and health care sectors during the investment time period. We were slightly underweight the energy, financials, and consumer discretionary sectors and more decidedly underweight the materials, consumer staples, telecommunication services, and utilities sectors.

Good performance for the Fund in information technology equities was offset by weak performance in our consumer discretionary equities. The Fund saw considerable strength in many technology names, including Electronic Arts, Open Table, which received a buyout offer from Priceline in the period, Pandora and Fusion-IO, which received a buyout offer from SanDisk in the period. Our consumer discretionary equities were generally weak, as many stocks struggled in response to concerns about the impact of the protracted winter on consumer demand. The stocks that struggled during the period were LKQ, DSW, Urban Outfitters and Carter’s. We think the performance of many of these stocks could improve as the weather issues have subsided and an improving job market begins to bolster consumption.

Slight underperformance in the materials sector was also a detractor in performance. We do not have exposure to paper, packaging, and chemicals sub-sectors, which produced solid returns during the period. The one stock we own in the group, Scotts Miracle-Gro, was yet another victim to extreme weather during a time of year when their business is very sensitive to weather trends.

The energy sector was another area of relative weakness in the period as the market became concerned about the infrastructure bottlenecks in natural gas take-away capacity of some of the newer shale gas production areas. This development caused some pressure on our natural gas exploration and production companies, Cabot Oil & Gas and Southwestern Energy Company.

We outperformed in the health care sector during the period. Strength in that sector was broad-based with most of our equities outperforming both the sector and the index overall. Our best performing stocks in that sector were Medivation, Humana, and Intuitive Surgical.

The commentary provided above was from the current sub-adviser of the Fund, Ivy Investment Management, who became the manager of the Fund on May 1, 2014.

Independence Capital Management, Inc.

Investment Adviser

Ivy Investment Management

Investment Sub-Adviser

16

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Consumer Discretionary		23.4	%
Technology		21.2	%
Industrials		17.0	%
Healthcare		15.5	%
Financials		8.8	%
Energy		6.8	%
Consumer Staples		6.3	%
Materials & Processing		1.0	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

17

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Cap Value Fund

The Penn Series Mid Cap Value Fund returned 8.27% for the six-month period ending June 30, 2014, compared to the 11.14% return for its benchmark, the Russell Micap Value Index.

After a 2.9% drop in first quarter gross domestic product (GDP), which many attribute to extreme winter weather, economic growth while sluggish seems to be accelerating. Many key economic indicators including business and consumer confidence, payroll employment gains, auto sales, and the Purchasing Managers Index have shown improvement. Most central banks, including the Federal Reserve (despite tapering), continue to be accommodative. This easy money policy has been the primary driver of stock and bond rallies and will hopefully translate into a self-sustaining recovery.

Perhaps the biggest surprise was the increase in bond prices in the second quarter with the 10-year treasury yield declining from 2.76% at the end of the first quarter to 2.51%. The decline in yields resulted in interest sensitive sectors such as utilities and financial services performing particularly well. The Fund’s underweight in these areas detracted considerably from relative performance. REITs, an area where the Fund has very few holdings, appreciated more than 15% year to date.

In general, stocks within the Fund performed well with positive reactions to both improved earnings and restructuring announcements. Corporate balance sheets remain liquid and managements have returned meaningful amounts of cash to shareholders through share repurchases and dividend increases. Merger and acquisition activity accelerated and this also created a tailwind for our portfolio companies. Ashland announced the sale of its water technologies business, Hertz announced the spin-off of its equipment rental business and Safeway agreed to be acquired by Cerebus Capital at a substantial premium. The Fund benefited from better than expected earnings in Skyworks, Flextronics and General Dynamics. Office Depot announced an increase in synergies from its recent merger with OfficeMax and Avis Budget continued to forecast better than expected earnings. Covanta substantially increased its dividend and announced a major cost reduction program.

Stocks that missed earnings projections were punished in the marketplace. Staples, ADT, Best Buy, Teradata, Bed Bath and Beyond and Darden, declined meaningfully. Towards the end of the second quarter, several portfolio companies pre-announced disappointing earnings. Elizabeth Arden’s licensed perfume business is faring

poorly and KBR continues to struggle with inadequately priced contracts. Express, which declined in the first quarter after a sizeable earnings miss, received an acquisition proposal from private equity firm Sycamore Partners at what could be a significant premium. Spirit AeroSystems, which also missed earnings in the first quarter, is now capitalizing on the growing commercial aerospace market and has recouped much of its losses.

Despite the multi-year bull market that has boosted equities to above average valuations we believe that stocks can move even higher during the second half of the year. The Fed remains accommodative despite signs of increased inflation and investors should continue to favor equities. While our portfolio of stocks is not nearly as cheap as it was in 2009, we are still identifying companies we believe are selling at meaningful discounts to our intrinsic value estimates and generating strong free cash flow. Given increased merger and acquisition and activist activity, we expect more of our portfolio companies to engage in value creating events this year. Despite our somewhat bullish position, we are cognizant of the huge amount of liquidity created by monetary authorities over the last five plus years and its positive impact on equity markets. We believe, at some point (when inflation accelerates) this will have to be reversed and could put pressure on stocks.

Independence Capital Management, Inc.

Investment Adviser

Neuberger Berman Management

Investment Sub-Adviser

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Industrials		22.2	%
Technology		18.9	%
Financials		15.9	%
Consumer Discretionary		14.5	%
Utilities		8.1	%
Energy		7.5	%
Health Care		5.6	%
Consumer Staples		4.3	%
Materials & Processing		3.0	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

18

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Core Value Fund

The Penn Series Mid Core Value Fund returned 10.11% for the six-month period ending June 30, 2014, compared to the 11.14% return for its benchmark, the Russell Midcap Value Index.

U.S. stocks recorded positive returns during the first six months of 2014. When the period began in January, yield-oriented securities, including utilities and REITs, rallied as the 10-year U.S. Treasury yield declined. Late in the first quarter, there was a reversal in the performance of stocks, and value stocks surged.

Although the Fund benefited from an underweight in financials, one of the weaker-performing sectors in the benchmark, it was held back by security selection. More specifically, the Fund’s significant underweight in REITs dampened results, as the REIT industry posted gains in the benchmark. REITs have been the beneficiaries of low interest rates, which have allowed them to reduce their debt costs. The Fund has been underweight REITs for some time because the team considers them generally overvalued.

Security selection in consumer discretionary was a drag on relative performance. The sector provided three key detractors — home improvement retailer Lowe’s Companies, retail chain Target, and luxury leather goods company Coach. Unusually bad weather hurt Lowe’s same-store sales during the first quarter. Target’s stock price fell after the retailer unexpectedly announced its CEO’s departure. The management change could be positive, in the team’s opinion, as Target works to move past the data breach of last winter and the challenges of its expansion into Canada. Some of Coach’s products have been off trend, leading to a decline in sales.

In industrials, an overweight in ADT hampered relative performance. The security monitoring company experienced an increase in subscriber-acquisition costs and associated lower-than-expected account growth as a result of competitors’ aggressive tactics, a situation the team considered largely transitory. Indeed, near the end of the period, ADT’s stock rallied on reduced concern over competitive threats. Also within industrials, an overweight in Koninklijke Philips detracted from results after management announced some near-term earnings drags, including foreign exchange, slower orders from China, a delay in cost savings to the second half of 2014, and disruptions at a U.S. production facility. The team believes

these issues are transitory and continues to favor the name.

In information technology, security selection added to relative results. In particular, the Fund benefited from its holdings in the semiconductor and semiconductor equipment industry. An investment in Applied Materials enhanced performance. The semiconductor maker is expected to see strong profit margin improvement and earnings growth as a result of its acquisition of Tokyo Electron.

Stock selection in the consumer staples sector, especially in the food products industry, contributed positively. The Fund benefited from its investment in Hillshire Brands, which appreciated as Tyson Foods and Pilgrim’s Pride competed to acquire the food maker. Ultimately, Hillshire announced it was being acquired by Tyson Foods.

In energy, the Fund benefited from its overweight in the oil, gas, and consumable fuels industry. An overweight in integrated energy company Imperial Oil added to results, as did investments in Apache and Devon Energy, both oil and gas exploration and production companies. All three stocks performed well as oil prices increased in response to renewed unrest in the Middle East. Imperial Oil also announced it was nearing the end of its capital expenditures for the Kearl oil sands project.

As of June 30, 2014, the team saw attractive opportunities in industrials, consumer staples, health care, utilities, energy, and telecommunication services, as reflected by the Fund’s overweights in these sectors. Conversely, smaller relative weightings were given to financials, consumer discretionary, materials, and information technology stocks.

Independence Capital Management, Inc.

Investment Adviser

American Century Investment Management

Investment Sub-Adviser

19

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Financials		26.3	%
Utilities		13.9	%
Industrials		13.8	%
Health Care		12.1	%
Technology		8.6	%
Energy		7.6	%
Consumer Staples		6.9	%
Consumer Discretionary		6.0	%
Materials & Processing		3.4	%
Telecommunications		1.4	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

20

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

SMID Cap Growth Fund

The Penn Series SMID Cap Growth Fund returned –1.02% for the six-month period ending June 30, 2014, compared to the 3.97% return for its benchmark, the Russell 2500 Growth Index.

No sector was more impacted by the market rotation than information technology. The sector is home to some of the most significant innovation in the U.S. economy. With this innovation, however, comes premium valuation multiples that were hardest hit in March and April. Of particular challenge were holdings in the internet software and services space, where our position in Channeladvisor came under pressure. Channeladvisor works with small businesses to aggregate products on multiple online channels. The company beat guidance on all metrics, including strong customer additions. However, shares declined as stocks with high valuations sold off heavily during April. Guidewire Software, which sells software to the insurance industry under a subscription model, also came under pressure during the quarter. Despite reporting a strong quarter and raising guidance, the shares sold off over 17%. We continue to believe the company has strong prospects as new software platforms are developed, property and casualty insurers face competition to provide mobile platforms, and customers will likely seek Guidewire’s expertise in pricing and data analytics. Therefore we opportunistically added to the position.

Stock selection within industrials weighed on returns. Shares of industrial rail road company Kansas City Southern declined after the company’s first quarter results fell short of expectations. The company’s rail network is strategically positioned to participate in increasing trade between the U.S. and Mexico. However, regulatory concerns mandating open access on Mexican rail lines with public pricing transparency arose, which threatened KSU’s exclusivity agreements within the country. This led to a sell-off in the shares and a compromise to our investment thesis. As is consistent with our process, the increased uncertainty led us to sell our position in favor of better ideas.

Over the last several quarters, accelerated spending and demand for durable goods has been an area of emphasis within our consumer discretionary holdings. This strategy proved additive to returns during the quarter as Restoration Hardware Holdings gained over 38%. This retailer of higher-end home furnishings is seeing the benefits of a meaningful change in strategy. The company has moved from smaller, mall-based stores to significantly

larger “design centers” that are capable of displaying much more of the firm’s inventory. These new initiatives had a positive impact on results as the company reported quarterly sales and earnings well above consensus estimates.

Another example of strong demand for consumer durables was visible in the performance of Lithia Motors which posted a return of just over 36%. Lithia, an automotive retailer, has experienced strong demand and recently made a highly accretive acquisition that will expand their geographical footprint. Lithia should continue to gain share in the highly fragmented auto industry and benefit from improving auto repair trends; a business that carries significant incremental margins.

Our position in telecommunication services, though small, provided strong contributions during the quarter. Shares of SBA Communications, a wireless tower company, gained over 13% after the company reported better-than-expected revenue and earnings. SBA’s growth continues to be driven by the capital spending required to support the growth in mobile data traffic.

We continue to maintain an earnings growth rate significantly above benchmarks and to target companies that can “make their own luck.” We have high conviction in several themes including internet spending, mobile/wireless spending, biopharmaceuticals, aerospace, transportation, and bank lending growth. We believe this game plan will eventually yield the type of results we all expect.

Independence Capital Management, Inc.

Investment Adviser

Wells Capital Management

Investment Sub-Adviser

21

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Industrials		25.8	%
Technology		21.5	%
Consumer Discretionary		17.9	%
Healthcare		16.0	%
Financials		6.1	%
Consumer Staples		4.3	%
Energy		4.3	%
Telecommunications		2.4	%
Materials & Processing		1.7	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

22

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

SMID Cap Value Fund

The Penn Series SMID Cap Value Fund returned 8.46% for the six-month period ending June 30, 2014, compared to the 7.87% return for its benchmark, the Russell 2500 Value Index.

In the second quarter of 2014 investors grappled with geopolitical turmoil in the Ukraine and the Middle East, as well as the lingering impact of a brutal winter on U.S. businesses. In the end, the resilience of the US economic recovery won out and equity markets rose in the quarter.

During the first half of 2014, the Fund rose in absolute terms and outperformed its benchmark, the Russell 2500 Value Index. The outperformance was driven by strong stock selection, particularly in the technology and financial sectors. Stock selection in the industrial resources sector and an underweight position in utilities detracted from performance.

Leading individual contributors included Electronic Arts, Health Net, CDW, Stone Energy and Con-way. Health Net missed its first quarter 2014 results but saw improved medical costs and maintained its full year earnings guidance.

Leading individual detractors included First Niagara Financial, The Children’s Place, Meritage Homes, Commercial Metals and Susquehanna Bancshares. First Niagara Financial, a regional bank, was affected by investor uncertainty about the potential returns from its new strategic plan.

Macro concerns have influenced investor behavior over the past few years. While the U.S. economy has been gradually healing after the worst financial crisis in recent memory, investor uncertainty continues to weigh on the equity markets.

In this environment, we believe the most compelling opportunities share a common set of characteristics. These include strong free cash flow, attractive valuations and company specific catalysts that can drive further cash earnings growth. We believe that stocks fitting this description have a wide variety of ways to create shareholder value and are less tied to the success of the economic recovery.

Independence Capital Management, Inc.

Investment Adviser

AllianceBernstein

Investment Sub-Adviser

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Financials		31.7	%
Consumer Discretionary		20.2	%
Technology		14.8	%
Materials & Processing		10.7	%
Industrials		7.8	%
Utilities		6.3	%
Energy		4.7	%
Healthcare		2.4	%
Consumer Staples		1.4	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

23

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Growth Fund

The Penn Series Small Cap Growth Fund returned 2.20% for the six-month period ending June 30, 2014, compared to the 2.22% return for its benchmark, the Russell 2000 Growth Index.

For much of the past year, we have warned that many cloud computing, social media and biotech stocks traded at extremely high valuations, driven largely by momentum and excitement around these industries, rather than underlying fundamentals. We selectively own a few of these companies we feel have the potential to justify such high valuations, but have largely avoided those pockets of the market. Many of the momentum-driven stocks have yet to produce positive earnings, and we believe they would need truly exceptional multiyear revenue growth to meet expectations implied in their current lofty valuations. Investing in companies with such high valuations, and less proven or durable track records, typically does not fit our investment process.

Instead, we favor companies that we believe have a much steadier growth profile. As part of our investment process, we focus on identifying companies we believe have long-duration growth potential, but that also have higher-quality business models with more predictable, growing revenue streams. These companies often have sustainable competitive advantages such as high barriers to entry in their respective industry, or a differentiated product or service that gives them pricing power, which should in turn help the company grow in a variety of economic environments.

Looking at performance across different sectors, stock selection in the consumer discretionary and technology sectors were the largest detractors from relative performance. Our stock selection in the energy and industrials sectors were the largest contributors to relative results.

Wolverine Worldwide was our largest detractor. The company owns a number of shoe brands, and in our view it has a proven track record of acquiring and improving management of those brands, then increasing sales as Wolverine pushes those brands through its global distribution network. The stock fell in the first quarter due to concern about a slowdown in its Sperry shoe brand, but sales were being compared to a period of extremely high sales growth the year before. We think Sperry has many elements similar to many other American lifestyle brands that have gained traction internationally, and as such, the

brand will be a key beneficiary of Wolverine’s global distribution network.

Hibbett Sports was another large detractor. The company is a sporting goods retailer specializing in footwear, equipment and apparel. Hibbett announced it will have to make some investments to develop a stronger e-commerce strategy. Those investments could constrain margins in the near term, which has weighed on the stock, but we continue to like the long-term outlook for the company.

Athlon Energy was our largest contributor to performance, and one of several companies in the energy sector that performed well during the period. We participated in the exploration and production company’s IPO a few months back because we liked the potential of its consolidated acreage in the West Texas Permian Basin. The stock was up significantly during the period due to positive well results announced by Athlon and a rise in oil prices during the second quarter.

Top contributor outside the energy sector was Measurement Specialties. The company creates sensors that serve a wide range of end markets including automobiles, commercial vehicles, and industrial and medical equipment. We believe the sensor industry has a long runway for growth as sensor content continues to increase across most industries. We also like that sensors are typically a mission-critical item but represent a small percentage of the total bill of goods of the products they are used in.

Independence Capital Management, Inc.

Investment Adviser

Janus Capital

Investment Sub-Adviser

24

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Technology		33.9	%
Industrials		20.4	%
Healthcare		16.0	%
Consumer Discretionary		14.7	%
Energy		6.2	%
Financials		6.0	%
Materials & Processing		1.7	%
Consumer Staples		0.8	%
Telecommunications		0.3	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

25

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Value Fund

The Penn Series Small Cap Value Fund returned 5.73% for the six-month period ending June 30, 2014, compared to the 4.20% return for its benchmark, the Russell 2000 Value Index.

During the first quarter, within the financials sector, Bank of the Ozarks was a top contributor to returns. In January, the bank reported fourth quarter earnings that exceeded consensus expectations, supported by impressive revenue and loan growth. Separately, at the end of January, its shares rose following the announcement that Bank of the Ozarks would acquire Arkansas-based Summit Bancorp. Investors reacted positively to this announcement as the deal will likely bolster Bank of the Ozarks’ market share.

Information Technology holding, TriQuint Semiconductor, was also a top contributor to Fund performance in the first quarter. Shares of TriQuint Semiconductor, a manufacturer of radio-frequency semiconductor chips, rallied after the company announced that it had entered into a merger agreement with RF Micro Devices. The all-stock transaction will create a new company with the potential to be a significant competitor in the radio-frequency solutions space.

Rex Energy, an exploration and production company focused on oil and natural gas, was a top detractor during the first quarter. In February, shares of Rex Energy declined as investors were disappointed by the company’s first quarter production guidance. Despite near-term weakness, we continue to believe that Rex Energy is well positioned over the longer term in areas that could experience significant production growth. Within the consumer discretionary sector, GNC Holdings was a top detractor from performance. Shares of GNC, a leading retailer of health and nutrition related products, traded lower after the company announced both fourth quarter earnings and 2014 guidance below consensus expectations. Consistent with much of the retail industry, inclement winter weather led GNC to increase its promotional spending, which then weighed on the company’s margins.

During the second quarter, within the consumer staples sector, Susser Holdings, a convenience-store operator based in Texas, was a top contributor to returns. In late April, its shares rose sharply after Energy Transfer Partners, which owns and operates a diverse portfolio of energy assets, announced plans to acquire Susser Holdings at a significant premium. In our view, the transaction is

attractive from Energy Transfer Partners’ perspective, as it has the potential to both increase the valuation of its current convenience-store operations, while meaningfully expanding the company’s retail presence in areas of Texas experiencing strong economic growth. Materials holding, PolyOne, was also a top contributor to Fund performance as shares of the provider of specialized polymer materials, rose gradually throughout the second quarter as investors were encouraged by better-than-expected first quarter results.

Within the consumer discretionary sector and at the overall Fund level, GNC Holdings was a top detractor from returns in the second quarter. Shares of GNC, traded lower as investors were disappointed by lower-than-expected first quarter revenue and earnings, as well as the company’s reduction of its 2014 earnings-per-share guidance. Management cited inclement winter weather, an unusually significant amount of negative media and year-over-year sales hurdles in the company’s diet and pre-workout categories as contributing factors to the challenged results. In our view, GNC will be able to overcome these transient issues as the company’s comparable same-store sales have the potential to reaccelerate in the second half of the year. Dynegy, an electric utility company that owns and operates power plants fueled by natural gas and coal, was also a top detractor from performance. Despite a recent rally, we believe that shares have the potential for further gains supported by what we view as strengthening fundamentals in the competitive power market.

Independence Capital Management, Inc.

Investment Adviser

Goldman Sachs Asset Management

Investment Sub-Adviser

26

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Financials		36.4	%
Industrials		13.5	%
Technology		11.3	%
Consumer Discretionary		9.7	%
Energy		7.4	%
Materials & Processing & Processing		7.0	%
Utilities		6.5	%
Healthcare		5.8	%
Consumer Staples		1.9	%
Telecommunications		0.5	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

27

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Index Fund

The Penn Series Small Cap Index Fund returned 2.84% for the six-month period ending June 30, 2014, compared to the 3.19% return for its benchmark, the Russell 2000 Index.

A disappointing January brought a number of chillier reports on global economic activity, and the first month of 2014 ended with U.S. stocks hesitating near two-month lows. A weak manufacturing reading in early February served to unnerve investors further, driving averages of larger U.S. equities to the worst levels since late October. But Janet Yellen, newly installed head of the U.S. Federal Reserve, came across as thoroughgoing and confident in her first opportunity to provide formal testimony before Congress.

Smaller stocks snapped back smartly when January jitters found ready relief from new leadership at the Federal Reserve, and they enjoyed a fruitful February indeed. But small caps eventually fell victim to a newfound distaste for overly aggressive investment themes. After hitting multi-decade highs relative to larger stocks in early March, shares in smaller firms saw their momentum begin to wane, and when popular growth names ran into concerted selling in the last two weeks of the first quarter, underperformance of small caps became more obvious. The Russell 2000^® Index conceded 0.7% during March, paring its first-quarter gain back to 1.1%, and leaving it 70 basis points behind the S&P 500 on a year-to-date basis. Stocks in the middle tier held up better during the market palpitations of March, and the S&P Midcap 400 Index^TM tacked on 0.4% in the final month of the first quarter. Even though the S&P 400 lagged its senior counterpart in March, its 3.0% return for the full quarter represented solid leadership for early 2014.

After demonstrating resilient outperformance since mid-summer of 2013, growth-oriented portfolios finally ran into serious resistance during March of 2014. Uncertainty about economic prospects was hardly the culprit, as the Federal Reserve felt confident enough in its outlook to expect a slightly sooner arrival of its first rate hike. Rather, the brilliant market successes of social media, cloud computing, internet security, and advanced medical technology seem to have attracted too much equity supply, either in the form of new offerings from untested companies or of insider selling from firms already public. As momentum-oriented players recognized the imbalance, the last two weeks of March saw growth benchmarks give back roughly six months of leadership relative to value

indexes. On the large cap side, the Russell 1000^® Value Index gained 2.4% in March, but the Russell 1000^® Growth Index declined by 1.0%. Russell 1000 Growth retained a positive 1.1% return for the first quarter, but Russell 1000 Value has established a clear lead with its 3.0% gain since the start of the year. As for small caps, while the Russell 2000^® Value Index added 1.2% for March, the Russell 2000^® Growth Index tumbled 2.5%, lagging by 370 basis points on the month. Russell 2000 Growth nonetheless retained a 0.5% gain for the full first quarter, but Russell 2000 Value did even better with a three-month advance of 1.8%.

Independence Capital Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Financials		23.1	%
Technology		17.7	%
Industrials		14.6	%
Healthcare		13.5	%
Consumer Discretionary		13.0	%
Energy		5.7	%
Materials & Processing		4.8	%
Consumer Staples		3.7	%
Utilities		3.1	%
Telecommunications		0.8	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

28

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Developed International Index Fund

The Penn Series Developed International Index Fund returned 4.72% for the six-month period ending June 30, 2014, compared to the 5.14% return for its benchmark, the MSCI EAFE Index.

On a regional basis, MSCI Europe continued to outpace MSCI Pacific during the first quarter. While MSCI Pacific used strength in Australia and New Zealand assets to eke out a 0.1% gain for March, their resilience was insufficient to prevent the regional benchmark from ceding 2.5% for the first quarter as a whole. MSCI Hong Kong had a poor start to 2014, with weak consumer and financial stocks contributing to a 2.2% loss for March and a 3.4% decline for the quarter. The latter result was the second worst among EAFE constituents. MSCI Singapore managed a solid 2.6% rebound in March, but still ended the first quarter with a 0.9% decline, as financial names had a particularly rough January. Even though MSCI Japan limited its March decline to 1.3%, disappointment with a lack of progress on structural reforms left the index with a 5.6% loss for the full first quarter, making it the worst performer within EAFE. With the yen appreciating solidly in early 2014, investors wanted to see expanded action from the Bank of Japan to offset the higher consumption taxes due to take effect in April, but by the end of the quarter, it was not clear that additional easing would even arrive before May. In addition to a strong currency, MSCI Australia benefited from solid banking shares to return 4.0% for March and 5.9% for the full first quarter. Solid healthcare stocks were among the contributors to MSCI New Zealand, which was the top EAFE performer for March and second best for the first quarter as a whole. The Reserve Bank had the temerity to lift interest rates by 25 basis points, implementing its first policy hike since the summer of 2010. Healthy appreciation of the kiwi dollar helped produce a March advance of 6.5% for MSCI New Zealand and an impressive year-to-date gain of 16.4%.

Sector performance in EAFE was tightly clustered in March, with all ten groups finishing the month between positive and negative 2%. With two exceptions, returns for the full first quarter showed similarly close mixture. Only three sectors were positive in March, and each was positive for the quarter as well. Three other sectors were negative in March, but positive for the full quarter, while four were negative in both time frames. Consumer staples and energy were among the dual winners, adding 0.3% in the latest month as they served as defensive havens amid spikes in volatility. Each did slightly better for the first

quarter as a whole. But the best performer for both March and the full first quarter was the utilities sector, which attracted fresh interest after a lackluster 2013. The EAFE utilities gained 1.8% in March and 7.1% for the full quarter. The other quarterly standout was EAFE health care. Despite giving back 2.0% in March as growth themes lost a little favor, the healthcare sector retains a 5.8% advance since the start of 2014. After healthcare, the weakest sector in March was telecommunications services, which slipped 1.9%. Telecom lost 2.1% for the full first quarter, making it the worst year-to-date performer in EAFE, but investors who rode the sector through its stunning leadership run of 2013 could be forgiven for taking some profits. The only other EAFE sector to lose as much as 50 basis points for the first quarter, consumer discretionary, was also a dual loser. Discretionary shed 1.6% in March and 2.0% for the full quarter, like telecom falling victim to mild profit-taking after notching huge gains in 2013.

Independence Capital Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

29

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Japan		20.2	%
United Kingdom		18.6	%
Switzerland		9.7	%
France		9.6	%
Germany		9.1	%
Australia		7.7	%
Netherlands		5.0	%
Spain		3.6	%
Sweden		3.0	%
Hong Kong		2.7	%
Italy		2.5	%
Denmark		1.5	%
Singapore		1.4	%
Belgium		1.2	%
Finland		0.8	%
Ireland		0.8	%
Norway		0.7	%
Israel		0.5	%
Luxembourg		0.4	%
Austria		0.3	%
Portugal		0.2	%
China		0.1	%
Bermuda		0.1	%
Guernsey		0.1	%
Jersey		0.1	%
New Zealand		0.1	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent the countries in which the securities are denominated.

30

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

International Equity Fund

The Penn Series International Equity Fund returned 8.05% for the six-month period ending June 30, 2014, compared to the 5.14% return for its benchmark, the MSCI EAFE Index.

Generally speaking, global equity markets have been strong and emerging markets have been lifted more sharply as sentiment has improved toward the region from more depressed levels.

Housing Development Finance Corporation (HDFC) was a top contributor to performance. HDFC benefited from the strong recovery in the Indian stock market, as investors are convinced that the newly elected reform-focused government of Narendra Modi will help transform the Indian economy for the better. HDFC is well placed for long-term growth as it is the leader in mortgage lending in India, with margins supported by industry-leading low costs from both efficient operations and low borrowing costs due to its excellent credit history.

Novo Nordisk continues to deliver strong results. Novo is the leading drugs company focused on diabetes care. The company is highly focused on its few core therapeutic areas and rewards shareholders with industry leading growth rates and cash returns.

Rolls Royce, a leading aircraft engine manufacturer, posted lower-than-estimated earnings for fiscal year 2013 and guided to no earnings growth in 2014. The company makes commercial and military engines for airlines, corporations, helicopter operators, and various governments around the world. Our investment is based on the positive secular trend in demand. Older airplanes are being replaced by newer, more fuel-efficient airplanes. Rolls Royce has several clear competitive advantages. First, it has a stellar reputation. Second, it shares a market duopoly with GE Aviation. Third, it has predictable cash flow. An aircraft model has a life of at least 30 years, and an aircraft has a life time of approximately 20 years. When Rolls Royce is selected as a supplier for a particular aircraft, it has a revenue stream that can be expected to last for at least 30 years. Revenues from maintenance account for 50% of consolidated revenues. Given that the average engine is only eight years old, we expect that this cash flow stream will have a long tail.

Paddy Power, an Irish gaming company, released weaker-than-forecast results for its year-to-date period. The company also announced the CEO’s intention to step down

in April of next year. Paddy Power has both a physical gambling business and an online business. The company has a powerful brand and a fun, innovative and edgy image. Its business footprint currently spans only jurisdictions where it can operate legally, which is a rarity in the global online gaming marketplace. Most competitors in the online space have been happy to cross into geographies where gambling is not legal, tempted by the short-term buck to be made. Paddy Power has consistently kept its gaming nose clean and mainly operates in Ireland, the United Kingdom, France, and Australia through direct or business-to-business operating ventures.

Despite macro volatility this year, including Russia/Ukraine, a coup in Thailand, increasing troubles in the Middle East, etc., all major markets had positive returns for the year. While we monitor these global risks as they can lead to oil price shocks, or other nastiness for the businesses in which we invest, we continue to spend the overwhelming majority of our time focused on businesses, their growth prospects and their specific risks. We remain excited about the earnings outlook for the companies held in the strategy, and the portfolio is well-positioned to perform in a variety of market environments.

Independence Capital Management, Inc.

Investment Adviser

Vontobel Asset Management

Investment Sub-Adviser

31

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
United Kingdom		19.1	%
Switzerland		15.6	%
India		11.4	%
France		8.2	%
Canada		7.8	%
Netherlands		7.2	%
United States		6.9	%
China		4.9	%
Denmark		3.1	%
Hong Kong		2.9	%
Australia		2.8	%
Mexico		2.4	%
Brazil		2.4	%
Spain		1.5	%
Japan		1.3	%
South Africa		1.2	%
Ireland		0.9	%
Italy		0.4	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent the countries in which the securities are denominated.

32

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Emerging Markets Equity Fund

The Penn Series Emerging Markets Equity Fund returned 5.35% for the six-month period ending June 30, 2014, compared to the 6.32% return for its benchmark, the MSCI Emerging Markets Index.

During the six-month period, country allocation relatively was flat, while stock selection contributed slightly to performance. The primary contributors to the Fund’s absolute returns were stock selection and an underweight allocation in China, stock selection and an overweight allocation in Thailand, and stock selection and an overweight allocation in the Philippines. Detracting from relative results were stock selection and allocation in Turkey and stock selection in Poland.

For the past three years, every major assumption about emerging markets (EM) equities has been tested, and investors have shown extreme swings in sentiment from optimism to fear. The first quarter of 2014 showed no variation from such behavior. Early in the year, many EM investors reacted negatively to events in Argentina, Ukraine and to macro-economic numbers from China that disappointed consensus expectations. In March, a sense that a stealth stimulus program was taking place in China, combined with optimism that political prospects were improving in Indonesia, India and Brazil, all contributed to a sudden positive shift in investor sentiment. Hope rallies were major drivers of the latter three markets, with state-owned (largely value-oriented) companies the chief beneficiaries.

Three major factors have contributed to the prevailing bearish sentiment that has plagued emerging markets for some time: current account deficits, domestic dissatisfaction with state political regimes, and excessive credit growth. In an encouraging sign, many investors began to make country distinctions in the first quarter, recognizing the differences and changes taking place among current account deficits; rallying on the prospect for selective political reform; and further acknowledging that China’s credit growth has become problematic. The fundamental fault-line that will continue putting negative pressure on EM equities in coming months remains an increasing recognition that China could suffer economically from its massive credit expansion of the past five years. While the market has discounted much of this, there is still further room to go, in our view.

The Fund’s portfolio remains underweight China and China-related plays via commodities and commodities-oriented markets such as Brazil, Russia and South Africa. In regard to the challenges from rising U.S. bond yields, we remain focused on being overweight those countries which we believe are fundamentally sound but had suffered collateral damage in 2013 — including the Philippines, Mexico, Thailand, Poland and India. These are countries which have not experienced excessive credit growth since the global financial crisis, and whose balance of payments are improving. We consider Eastern Europe a well-placed region to benefit from Europe’s growth recovery. The Philippines remains an underpenetrated market for financial products and we expect gross domestic product (GDP) growth to remain buoyant, driven in part by healthy investment and infrastructure spending. We prefer countries we believe exhibit constructive reform agendas, sustainable levels of investment to GDP and compelling earnings prospects.

Independence Capital Management, Inc.

Investment Adviser

Morgan Stanley Investment Management

Investment Sub-Adviser

33

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
South Korea		15.7	%
China		10.0	%
India		8.8	%
Taiwan		8.1	%
Brazil		7.8	%
Mexico		6.8	%
South Africa		4.4	%
Thailand		4.2	%
Philippines		3.7	%
Poland		3.3	%
Hong Kong		2.8	%
Austria		2.8	%
Malaysia		2.4	%
United States		2.3	%
Russia		2.2	%
Switzerland		1.9	%
Columbia		1.9	%
Spain		1.5	%
Indonesia		1.2	%
Peru		1.1	%
Portugal		1.0	%
United Kingdom		0.9	%
Czech Republic		0.8	%
Hungary		0.7	%
Netherlands		0.6	%
Chile		0.6	%
Pakistan		0.6	%
Argentina		0.6	%
Panama		0.5	%
Japan		0.4	%
Qatar		0.4	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent the countries in which the securities are denominated.

34

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Real Estate Securities Fund

The Penn Series Real Estate Securities Fund returned 17.43% for the six-month period ending June 30, 2014, compared to the 17.66% return for its benchmark, the FTSE NAREIT Equity REIT Index.

U.S. REITs registered strong gains in the first half of 2014, outgaining the broad equity market after broadly underperforming in 2013. The period began with an easing in long-term bond yields as signs emerged that the unusually harsh winter weather had a negative impact on economic activity. Investors were initially apprehensive after data revealed that U.S. gross domestic product (GDP) contracted more than anticipated in the first quarter, but that sentiment soon faded as strong jobs reports and accelerating industrial production painted a more upbeat picture of the economy. The positive data lifted investors’ confidence that the recovery had sufficient momentum as the Federal Reserve continued to taper its bond purchases. At the same time, bond yields continued their downward trend amid a combination of an accommodative outlook for U.S. monetary policy and aggressive liquidity measures by the European Central Bank.

Fundamentals continued to improve for all types of real estate, driving solid returns across the REIT landscape. Apartment REITs performed well despite continued pressures of new supply. Many companies exhibited better-than-expected cash flow growth, as continued demand for rental housing enabled them to raise rents on existing tenants, even in markets where new tenants were being signed at lower rates. Revenues at self storage REITs also continued to improve amid rising rents and occupancy rates.

The regional mall and shopping center sectors benefited from growing retail sales and improving tenant demand for in-line storefronts in prime locations. Managements also had relatively good success improving the productivity of lower-performing assets through redevelopment. In the office sector, asset values and rent-growth expectations continued to improve, particularly in New York City and San Francisco. Industrial REITs also saw evidence of strengthening demand and higher rents. However, with developers ramping up construction to meet the demand for built-to-suit multipurpose facilities, investors showed increasing sensitivity to the potential impact of new supply in select markets.

The Fund had a strong total return for the period, driven by favorable stock selection across most property sectors. In

the diversified REIT sector, our participation in a secondary offering from Gramercy Property Trust contributed to relative performance; investors responded positively to the company’s use of capital to purchase the remaining stake in a portfolio of Bank of America branch offices. Other contributors included stock selection in the regional mall, office, apartment and shopping center sectors.

Stock selection in the hotel sector detracted from relative returns, hindered in part by our out-of-index allocations to certain non-REIT hotel owners, which underperformed along with the broader equity market. Among these was Orient-Express Hotels, which owns a hotel in St. Petersburg, Russia and declined amid rising geopolitical tensions in Ukraine.

We believe the U.S. economy remains on track for stronger GDP growth and a gradual rise in interest rates. We view this as a favorable backdrop for REITs, as the potential for higher asset values and cash flows should outweigh the likely return of upward-trending Treasury yields. U.S. REITs continue to offer attractive valuations, in our view, as we believe modest premiums to NAVs are justified given the improvement in real estate fundamentals and continued job growth.

We continue to see attractive value in high-quality regional mall and shopping center landlords, as well as some owners of Class-B assets that we believe offer potential for attractive risk-adjusted returns. Within the self storage sector, we expect further upside to cash flow growth amid strong demand and limited new supply.

Independence Capital Management, Inc.

Investment Adviser

Cohen & Steers Capital Management

Investment Sub-Adviser

35

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/14

	Percent of Total Investments1
Regional Malls		18.1	%
Apartments		15.3	%
Office Property		13.4	%
Healthcare		9.6	%
Storage & Warehousing		8.7	%
Strip Centers		8.5	%
Hotels and Resorts		8.2	%
Diversified		7.1	%
Industrial		5.9	%
Building & Real Estate		4.5	%
Lodging		0.7	%
		100.0	%

¹  Portfolio holdings are presented as a percentage of total investments before short-term investments.

36

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Aggressive Allocation Fund

The Penn Series Aggressive Allocation Fund returned 6.21% for the six-month period ending June 30, 2014, compared to the 4.87% and 3.93% returns of its benchmarks, the Russell 3000 Index and the Barclays Capital U.S. Aggregate Bond Index, respectively.

The Aggressive Allocation Fund is comprised of a target allocation of 95% equity funds, both active and passive, and 5% fixed income funds. The equity allocation of the Fund is comprised of domestic equity funds ranging from large capitalization funds to small capitalization funds as well as developed international and emerging markets equity funds and the fixed income portion is primarily allocated to intermediate-term bond funds.

Asset allocation had little effect on the Fund for the first six months of 2014. At the broad asset class level, the Aggressive Allocation Fund’s equity allocation outperformed its broad equity benchmark, the Russell 3000 Index for the year-to-date period. Contributing to the Fund’s performance versus its equity benchmark at the asset class level was the Fund’s allocation to the real estate, large value and mid value asset classes. While the strongest year-to-date contribution to performance within equity at the underlying fund level came from its allocation to developed international equity, at the asset class level, this international exposure had a negative impact on the Fund’s performance.

The Fund’s fixed income allocation performed in line with the Barclays Capital U.S. Aggregate Bond Index for the first six months of the year.

The Fund is continually reviewed to help ensure that it remains consistent with its investment objective by making adjustments, when necessary, of specific sub-accounts within an asset class as well as automatic rebalancing of the Fund on a quarterly basis.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/14

International Stocks	22.0	%
Large Cap Value Stocks	17.0	%
Large Growth Stocks	15.0	%
Emerging Markets	10.0	%
Mid Cap Value Stocks	8.0	%
Mid Cap Growth Stocks	7.0	%
Small Cap Value Stocks	6.0	%
Small Cap Growth Stocks	5.0	%
REITs	5.0	%
Intermediate Bonds	5.0	%
	100.0	%

37

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderately Aggressive Allocation Fund

The Penn Series Moderately Aggressive Allocation Fund returned 5.54% for the six-month period ending June 30, 2014, compared to the 4.87% and 3.93% returns of its benchmarks, the Russell 3000 Index and the Barclays Capital U.S. Aggregate Bond Index, respectively.

The Moderately Aggressive Allocation Fund is comprised of a target allocation of 80% equity funds, both active and passive, and 20% fixed income funds. The equity allocation of the Fund is comprised of domestic equity funds ranging from large capitalization funds to small capitalization funds as well as developed international and emerging markets equity funds and the fixed income portion is primarily allocated to intermediate-term and short-term bond funds.

At the broad asset class level, the Moderately Aggressive Allocation Fund’s equity allocation outperformed its broad equity benchmark, the Russell 3000 Index for the six-month period. Contributing to the Fund’s equity performance versus its benchmark was the Fund’s asset class allocation to real estate, mid cap value and large cap value. At the asset class level, this international exposure had a negative impact on the Fund’s performance.

The Fund’s fixed income allocation slightly underperformed the Barclays Capital U.S. Aggregate Bond Index for the six-month time period. Detracting from Fund performance was its asset class allocation to short-term bonds.

At the underlying fund level, the Fund’s allocation to developed international equity contributed the most to relative performance while its allocation to smaller growth capitalization detracted from performance.

The Fund is continually reviewed to help ensure that it remains consistent with its investment objective by making adjustments, when necessary, of specific sub-accounts within an asset class as well as automatic rebalancing of the Fund on a quarterly basis.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/14

International Stocks	19.0	%
Large Cap Value Stocks	15.0	%
Large Growth Stocks	13.0	%
Intermediate Bonds	13.0	%
Mid Cap Value Stocks	7.0	%
Emerging Markets	7.0	%
Mid Cap Growth Stocks	6.0	%
Short Term Bonds	5.0	%
Small Cap Value Stocks	5.0	%
Small Cap Growth Stocks	4.0	%
REITs	4.0	%
High Yield Bonds	2.0	%
	100.0	%

38

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderate Allocation Fund

The Penn Series Moderate Allocation Fund returned 4.83% for the six-month period ending June 30, 2014, compared to the 4.87% and 3.93% returns of its benchmarks, the Russell 3000 Index and the Barclays Capital U.S. Aggregate Bond Index, respectively.

The Moderate Allocation Fund is comprised of a target allocation of 60% equity funds, both active and passive, and 40% fixed income funds. The equity allocation of the Fund is comprised of domestic equity funds ranging from large capitalization funds to small capitalization funds as well as developed international and emerging markets equity funds and the fixed income portion is primarily allocated to intermediate-term and short-term bond funds.

Asset allocation had a negative effect on performance of the Moderate Allocation Fund. While the Fund’s equity allocation outperformed its broad equity benchmark, the Russell 3000 Index, it was its fixed income allocation that had a negative impact to overall asset allocation performance of the Fund for the first half of 2014. Aiding in the Fund’s six-month equity performance were its allocations to the real estate, mid value and large value asset classes. Weighing on the Fund’s performance was the Fund’s allocation to short-term bonds as this exposure detracted most from relative performance versus its fixed income benchmark.

At the underlying fund level, the Fund’s allocation to developed international equity contributed the most to relative performance while its allocation to smaller growth capitalization detracted from performance.

The Fund is continually reviewed to help ensure that it remains consistent with its investment objective by making adjustments, when necessary, of specific sub-accounts within an asset class as well as automatic rebalancing of the Fund on a quarterly basis.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/14

Intermediate Bonds	21.0	%
International Stocks	14.0	%
Large Cap Value Stocks	12.0	%
Short Term Bonds	12.0	%
Large Growth Stocks	10.0	%
Mid Cap Value Stocks	5.0	%
Emerging Markets	5.0	%
Small Cap Value Stocks	4.0	%
High Yield Bonds	4.0	%
Mid Cap Growth Stocks	4.0	%
Cash Equivalents	3.0	%
Small Cap Growth Stocks	3.0	%
REITs	3.0	%
	100.0	%

39

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderately Conservative Allocation Fund

The Penn Series Moderately Conservative Allocation Fund returned 4.08% for the six-month period ending June 30, 2014, compared to the 4.87% and 3.93% returns of its benchmarks, the Russell 3000 Index and the Barclays Capital U.S. Aggregate Bond Index, respectively.

The Moderately Conservative Allocation Fund is comprised of a target allocation of 40% equity funds, both active and passive, and 60% fixed income funds. The equity allocation of the Fund consists of domestic equity funds comprised of large capitalization and mid capitalization funds as well as developed international equity funds and the fixed income portion is mostly allocated to intermediate-term and short-term bond funds.

Asset allocation had a negative effect on performance of the Moderately Conservative Allocation Fund for the first half of 2014. At the broad asset class level, the Fund’s fixed income allocation underperformed the Barclays Capital U.S. Aggregate Bond Index for the period. Detracting from the Fund’s fixed income asset allocation performance versus the broad index was its cash and short-term bond allocations.

The Fund outperformed its broad equity benchmark, the Russell 3000 Index for the six-month period at the asset class level. Contributing to the Fund’s equity performance versus its benchmark was the Fund’s asset class allocation to real estate, mid cap value and large cap value.

At the underlying fund level, the Fund’s allocation to developed international equity contributed the most to relative performance while its allocation to smaller growth capitalization equity and intermediate-term bonds detracted from performance.

The Fund is continually reviewed to help ensure that it remains consistent with its investment objective by making adjustments, when necessary, of specific sub-accounts within an asset class as well as automatic rebalancing of the Fund on a quarterly basis.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/14

Intermediate Bonds	29.0	%
Short Term Bonds	20.0	%
Large Cap Value Stocks	10.0	%
International Stocks	9.0	%
Large Growth Stocks	7.0	%
High Yield Bonds	6.0	%
Cash Equivalents	5.0	%
Mid Cap Value Stocks	4.0	%
Emerging Markets	2.0	%
Mid Cap Growth Stocks	2.0	%
REITs	2.0	%
Small Cap Growth Stocks	2.0	%
Small Cap Value Stocks	2.0	%
	100.0	%

40

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Conservative Allocation Fund

The Penn Series Conservative Allocation Fund returned 3.18% for the six-month period ending June 30, 2014, compared to the 4.87% and 3.93% returns of its benchmarks, the Russell 3000 Index and the Barclays Capital U.S. Aggregate Bond Index, respectively.

The Conservative Allocation Fund is comprised of a target allocation of 80% fixed income funds and a target allocation of 20% in domestic and international equity funds, both passive and active. The fixed income funds predominately consist of short-term and intermediate-term bonds and the equity fund allocations consist of mostly large capitalization funds with a small exposure to developed international equity funds.

At the broad asset class level, the Conservative Allocation Fund’s fixed income allocation had a negative impact on performance as its asset allocation to short-term bonds and cash underperformed the Barclays Capital U.S. Aggregate Bond Index for the year-to-date time period. Aiding the Fund’s fixed income allocation performance was its allocation to high yield bonds.

The Fund’s equity allocation performed in line with its broad equity benchmark, the Russell 3000 Index. At the underlying fund level, the Fund’s allocation within developed international equity aided in its equity performance.

The Fund is continually reviewed to help ensure that it remains consistent with its investment objective by making adjustments, when necessary, of specific sub-accounts within an asset class as well as automatic rebalancing of the Fund on a quarterly basis.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/14

Intermediate Bonds	37.0	%
Short Term Bonds	25.0	%
Cash Equivalents	10.0	%
High Yield Bonds	8.0	%
Large Cap Value Stocks	7.0	%
Large Growth Stocks	5.0	%
International Stocks	5.0	%
Mid Cap Value Stocks	2.0	%
Mid Cap Growth Stocks	1.0	%
	100.0	%

41

Important Information about Fund Expenses

Hypothetical Examples of a $1,000 Investment (Unaudited)

We believe that it is important for you to understand the effect of fees on your investment. All mutual funds have operating expenses. As a participant in any of the Penn Series Funds, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund. A fund’s expenses are expressed as a percentage of its average daily net assets. This figure is known as the expense ratio.

The Penn Series Funds are the underlying investment vehicles for the variable life and variable annuity contracts issued by The Penn Mutual Life Insurance Company and its subsidiary, The Penn Insurance and Annuity Company. These contracts have transaction costs, additional administrative expense fees and mortality and expense risk charges. Because of these additional expenses, the costs to investors will be higher than the figures shown in the following expense examples. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in each fund and to compare these costs with the ongoing costs of investing in other funds.

These examples are based on an investment of $1,000 invested for six months beginning January 1, 2014 and held through June 30, 2014. The examples illustrate your fund’s costs in two ways:

• Actual Fund Performance in the table below provides information about actual account values and actual expenses. The “Ending Value” shown is derived from the fund’s actual return, and “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”

• Hypothetical 5% Annual Return is intended to help you compare your fund’s costs with those of other mutual funds. It assumes that the fund had a return of 5% before expenses during the period shown, but that the expense ratio is unchanged. In this case — because the return used is not the fund’s actual return — the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s cost by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

Please note that the expenses shown in the table are only meant to highlight and help you compare your ongoing costs of investing in the funds and do not reflect any fees and charges deducted under your insurance contract. The “Annualized Expense Ratio” represents the actual expenses for the six-month period indicated.

Disclosure of Fund Expenses

For the Period January 1, 2014 to June 30, 2014

Expense Table

	Beginning Value January 1, 2014		Ending Value June 30, 2014		Annualized Expense Ratio		Expenses Paid During Period *
Money Market Fund
Actual		$1,000.00		$1,000.06		0.12%		$0.59
Hypothetical		$1,000.00		$1,024.20		0.12%		$0.59
Limited Maturity Bond Fund
Actual		$1,000.00		$1,004.36		0.61%		$3.03
Hypothetical		$1,000.00		$1,021.73		0.61%		$3.06

42

Important Information about Fund Expenses

Hypothetical Examples of a $1,000 Investment (Unaudited)

	Beginning Value January 1, 2014		Ending Value June 30, 2014		Annualized Expense Ratio		Expenses Paid During Period *
Quality Bond Fund
Actual		$1,000.00		$1,035.29		0.60%		$3.03
Hypothetical		$1,000.00		$1,021.78		0.60%		$3.01
High Yield Bond Fund
Actual		$1,000.00		$1,053.80		0.83%		$4.23
Hypothetical		$1,000.00		$1,020.62		0.83%		$4.17
Flexibly Managed Fund
Actual		$1,000.00		$1,069.45		0.86%		$4.41
Hypothetical		$1,000.00		$1,020.47		0.86%		$4.32
Balanced Fund
Actual		$1,000.00		$1,054.39		0.20%		$1.02
Hypothetical		$1,000.00		$1,023.79		0.20%		$1.00
Large Growth Stock Fund
Actual		$1,000.00		$1,025.10		0.93%		$4.67
Hypothetical		$1,000.00		$1,020.12		0.93%		$4.67
Large Cap Growth Fund
Actual		$1,000.00		$1,045.84		0.90%		$4.57
Hypothetical		$1,000.00		$1,020.27		0.90%		$4.52
Large Core Growth Fund
Actual		$1,000.00		$1,029.57		0.88%		$4.43
Hypothetical		$1,000.00		$1,020.37		0.88%		$4.42
Large Cap Value Fund
Actual		$1,000.00		$1,067.12		0.88%		$4.51
Hypothetical		$1,000.00		$1,020.38		0.88%		$4.42
Large Core Value Fund
Actual		$1,000.00		$1,082.95		0.89%		$4.60
Hypothetical		$1,000.00		$1,020.32		0.89%		$4.47
Index 500 Fund
Actual		$1,000.00		$1,069.46		0.36%		$1.85
Hypothetical		$1,000.00		$1,022.98		0.36%		$1.81
Mid Cap Growth Fund
Actual		$1,000.00		$1,052.25		0.98%		$4.99
Hypothetical		$1,000.00		$1,019.87		0.98%		$4.92
Mid Cap Value Fund
Actual		$1,000.00		$1,082.66		0.81%		$4.18
Hypothetical		$1,000.00		$1,020.72		0.81%		$4.07
Mid Core Value Fund
Actual		$1,000.00		$1,101.12		1.07%		$5.57
Hypothetical		$1,000.00		$1,019.42		1.07%		$5.37
SMID Cap Growth Fund
Actual		$1,000.00		$989.81		1.05%		$5.18
Hypothetical		$1,000.00		$1,019.52		1.05%		$5.27

43

Important Information about Fund Expenses

Hypothetical Examples of a $1,000 Investment (Unaudited)

	Beginning Value January 1, 2014		Ending Value June 30, 2014		Annualized Expense Ratio		Expenses Paid During Period *
SMID Cap Value Fund
Actual		$1,000.00		$1,084.65		1.17%		$6.05
Hypothetical		$1,000.00		$1,018.92		1.17%		$5.87
Small Cap Growth Fund
Actual		$1,000.00		$1,021.95		1.03%		$5.16
Hypothetical		$1,000.00		$1,019.62		1.03%		$5.17
Small Cap Value Fund
Actual		$1,000.00		$1,057.33		1.08%		$5.51
Hypothetical		$1,000.00		$1,019.37		1.08%		$5.42
Small Cap Index Fund
Actual		$1,000.00		$1,028.44		0.59%		$2.97
Hypothetical		$1,000.00		$1,021.83		0.59%		$2.96
Developed International Index Fund
Actual		$1,000.00		$1,047.19		0.65%		$3.30
Hypothetical		$1,000.00		$1,021.53		0.65%		$3.26
International Equity Fund
Actual		$1,000.00		$1,080.54		1.15%		$5.93
Hypothetical		$1,000.00		$1,019.02		1.15%		$5.77
Emerging Markets Equity Fund
Actual		$1,000.00		$1,053.51		1.72%		$8.76
Hypothetical		$1,000.00		$1,016.15		1.72%		$8.64
Real Estate Securities Fund
Actual		$1,000.00		$1,174.27		0.98%		$5.28
Hypothetical		$1,000.00		$1,019.87		0.98%		$4.92
Aggressive Allocation Fund
Actual		$1,000.00		$1,062.14		0.33%		$1.69
Hypothetical		$1,000.00		$1,023.13		0.33%		$1.66
Moderately Aggressive Allocation Fund
Actual		$1,000.00		$1,055.41		0.31%		$1.58
Hypothetical		$1,000.00		$1,023.23		0.31%		$1.56
Moderate Allocation Fund
Actual		$1,000.00		$1,048.28		0.31%		$1.57
Hypothetical		$1,000.00		$1,023.23		0.31%		$1.56
Moderately Conservative Allocation Fund
Actual		$1,000.00		$1,040.84		0.32%		$1.62
Hypothetical		$1,000.00		$1,023.18		0.32%		$1.61
Conservative Allocation Fund
Actual		$1,000.00		$1,031.81		0.33%		$1.66
Hypothetical		$1,000.00		$1,023.13		0.33%		$1.66

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average value over the period, multiplied by the number of days in the most recent fiscal half-year (181 days), then divided by 365.

44

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Money Market Fund

	Par (000)		Value†
CERTIFICATES OF DEPOSIT — 1.9%
Banks — 1.9%
Citibank 0.240%, 07/01/14	$	670	$	670,000
0.230%, 08/18/14		2,142		2,142,228
TOTAL CERTIFICATES OF DEPOSIT (Cost $2,812,228)				2,812,228
COMMERCIAL PAPER — 70.0%
Beverages — 4.6%
Anheuser-Busch Inbev Worldwide Inc 0.180%, 01/29/15		500		499,470
Coca-Cola Co. 0.150%, 10/15/14		3,000		2,998,675
0.130%, 10/20/14		1,000		999,599
0.160%, 11/18/14		960		959,403
0.200%, 01/26/15		1,300		1,298,490
				6,755,637
Chemicals — 1.4%
Du Pont (E.I.) de Nemours & CO 0.050%, 07/01/14		2,000		2,000,000
Diversified — 0.9%
Proctor & Gamble Co. 0.130%, 10/22/14		1,300		1,299,470
Diversified Financial Services — 17.1%
ABB Treasury USA 0.100%, 07/29/14		1,800		1,799,860
0.150%, 07/31/14		3,600		3,599,550
Queensland Treasury 0.190%, 08/28/14		5,700		5,698,255
Reckitt & Benckiser Treasury Services PLC 0.150%, 07/01/14		500		500,000
0.310%, 09/03/14		1,200		1,199,339
0.340%, 09/08/14		1,000		999,348
0.230%, 09/12/14		1,000		999,534
0.210%, 12/04/14		1,000		999,090
Tesco Treasury 0.250%, 07/14/14		720		719,935
Wells Fargo & Company 0.110%, 08/13/14		1,000		999,868
0.130%, 08/13/14		100		99,984
0.130%, 08/22/14		200		199,962
WGL Holdings, Inc. 0.110%, 07/03/14		3,000		2,999,982
0.120%, 07/07/14		3,000		2,999,940
0.120%, 07/08/14		1,000		999,977
0.150%, 07/29/14		250		249,971
				25,064,595
Electric — 26.0%
Basin Electric Power 0.120%, 08/04/14		5,300		5,299,399
0.120%, 08/25/14		1,800		1,799,670
Dominion Resources, Inc. 0.230%, 07/08/14		380		379,983

	Par (000)		Value†
Electric — (continued)
Electricite de France
0.140%, 08/06/14	$	2,900	$	2,899,594
0.140%, 08/25/14		3,100		3,099,337
0.180%, 10/03/14		1,100		1,099,483
Florida Power & Light 0.160%, 07/03/14		4,200		4,199,963
GDF Suez S.A. 0.130%, 07/22/14		300		299,977
0.130%, 07/28/14		1,000		999,902
0.140%, 08/04/14		1,195		1,194,842
0.160%, 08/18/14		500		499,893
0.170%, 08/25/14		3,750		3,749,026
0.200%, 10/14/14		500		499,708
IDACORP, Inc. 0.250%, 07/11/14		625		624,957
Oglethorpe Power Corp. 0.120%, 08/15/14		3,500		3,499,475
Southern Co. 0.150%, 07/07/14		1,800		1,799,955
0.170%, 07/09/14		1,400		1,399,947
0.150%, 07/17/14		500		499,967
0.160%, 07/21/14		600		599,947
0.180%, 07/22/14		400		399,958
0.160%, 07/23/14		2,200		2,199,785
0.150%, 07/29/14		300		299,965
Union Electric Co. 0.260%, 07/02/14		719		718,995
				38,063,728
Electric & Gas — 3.1%
Nstar Electric 0.110%, 07/11/14		4,500		4,499,863
Electronics — 4.8%
Honeywell International, Inc. 0.140%, 09/16/14		2,300		2,299,311
0.140%, 09/22/14		2,200		2,199,290
0.120%, 10/21/14		2,500		2,499,067
				6,997,668
Healthcare Services — 4.7%
United Healthcare Corp. 0.150%, 07/01/14		6,500		6,500,000
0.150%, 07/02/14		450		449,998
				6,949,998
Insurance — 3.1%
Metlife 0.110%, 07/25/14		2,500		2,499,817
0.130%, 09/02/14		2,000		1,999,545
				4,499,362
Media — 0.4%
Time Warner Cable 0.260%, 07/25/14		540		539,906
Metal Fabricate/Hardware — 1.4%
Precision Cast 0.100%, 08/04/14		2,100		2,099,802

45

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Money Market Fund

	Par (000)		Value†
COMMERCIAL PAPER — (continued)
Oil & Gas — 1.2%
Conocophillips 0.120%, 08/28/14	$	300	$	299,942
Enbridge Energy 0.270%, 07/22/14		710		709,888
Nexerg Energy 0.240%, 07/09/14		700		699,963
				1,709,793
Pharmaceuticals — 1.3%
GlaxoSmithKline Finance, Plc. 0.090%, 07/29/14		2,000		1,999,860
TOTAL COMMERCIAL PAPER (Cost $102,479,682)				102,479,682
CORPORATE BONDS — 3.3%
Aerospace & Defense — 0.6%
Boeing Co 0.248%, 11/03/14•		930		930,135
Beverages — 1.6%
Anheuser-Busch Inbev Worldwide Inc 0.587%, 07/14/14•		295		295,039
Anheuser-Busch Inbev Worldwide, Inc. 1.500%, 07/14/14		2,000		2,000,857
				2,295,896
Diversified Financial Services — 0.6%
General Electric Capital Corp 0.493%, 09/15/14•		800		800,462
Healthcare Services — 0.2%
Unitedhealth Group Inc 0.354%, 08/28/14•		305		305,061
Oil & Gas Services — 0.3%
Schlumberger Investment S.A. 0.780%, 09/12/14•@		500		500,565
TOTAL CORPORATE BONDS (Cost $4,832,119)				4,832,119
MUNICIPAL NOTES — 19.6%
City of Minneapolis 0.050%, 12/01/27•		2,290		2,290,000
Colorado Housing & Finance Authority 0.060%, 10/01/30•		2,800		2,800,000
0.070%, 04/01/43•		1,145		1,145,000
Iowa Finance Authority 0.070%, 07/01/34•		1,140		1,140,000
0.070%, 01/01/39•		800		800,000
Minnesota Housing Finance Agency 0.070%, 07/01/36•		4,000		4,000,000
Pennsylvania Turnpike Commission 0.080%, 07/15/41•		5,000		5,000,000
South Dakota Housing Development Authority 0.080%, 05/01/39•		5,000		5,000,000

	Par (000)		Value†
State of Texas 0.080%, 12/01/29•	$	4,000	$	4,000,000
Triborough Bridge & Tunnel Authority 0.170%, 01/01/19•		2,500		2,500,000
Total MUNICIPAL NOTES (Cost $28,675,000)				28,675,000
U.S. TREASURY OBLIGATION — 3.4%
U.S. Treasury Note 0.070%, 01/31/16• (Cost $5,000,402)		5,000		5,000,402
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		4,909		4,909
BlackRock Liquidity Funds MuniFund Portfolio - Institutional Shares		1		1
BlackRock Liquidity Funds TempFund - Institutional Shares		1		1
Federated Prime Obligations Fund - Class I		1		1
Fidelity Institutional Prime Money Market Portfolio		2,540,907		2,540,907
Fidelity Institutional Prime Money Market Portfolio - Class I		1		1
Wells Fargo Advantage Heritage Money Market Fund - Institutional Class		1		1
Wells Fargo Advantage Municipal Cash Management Money Market Fund - Institutional Class		1		1
TOTAL SHORT-TERM INVESTMENTS (Cost $2,545,822)				2,545,822
TOTAL INVESTMENTS — 100.0% (Cost $146,345,253)			$	146,345,253

† See Security Valuation Note.

• Variable Rate Security.

@ Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “accredited investors”. Unless otherwise indicated, the security is considered liquid.

PLC — Public Limited Company.

46

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Money Market Fund

Maturity Schedule	Market Value		% of Portfolio		(Cumulative)
1 —     7 days	$	59,060,052		40.4%		40.4%
8 —   14 days		11,620,521		7.9%		48.3%
15 —   30 days		13,098,804		9.0%		57.2%
31 —   60 days		37,485,891		25.6%		82.9%
61 —   90 days		9,696,367		6.6%		89.5%
91 — 120 days		11,627,164		7.9%		97.4%
121 — 150 days		959,403		0.7%		98.1%
over 150 days		2,797,051		1.9%		100.0%
	$	146,345,253		100.0%

Average Weighted Maturity 35 days

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
U.S. TREASURY OBLIGATIONS	$	5,000,402	$	—	$	5,000,402	$	—
CERTIFICATES OF DEPOSIT		2,812,228		—		2,812,228		—
CORPORATE BONDS		4,832,119		—		4,832,119		—
COMMERCIAL PAPER		102,479,682		—		102,479,682		—
SHORT-TERM INVESTMENTS		2,545,822		2,545,822		—		—
MUNICIPAL NOTES		28,675,000		—		28,675,000		—
TOTAL INVESTMENTS	$	146,345,253	$	2,545,822	$	143,799,431	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

47

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Limited Maturity Bond Fund

	Par (000)		Value†
ASSET BACKED SECURITIES — 15.9%
Ally Master Owner Trust 1.540%, 09/15/19	$	1,000	$	1,000,398
Americredit Automobile Receivables Trust 2013-5 2.290%, 11/08/19		1,000		1,011,865
Cabela’s Master Credit Card Trust 0.682%, 02/18/20 144A @•		3,000		3,022,746
Capital One Multi-Asset Execution Trust 0.960%, 09/16/19		1,050		1,050,130
Carmax Auto Owner Trust 2014-2 0.980%, 01/15/19		2,000		2,001,420
Centerpoint Energy Transition Bond Co. LLC 0.901%, 04/15/18		3,120		3,125,219
Chase Issuance Trust 07-B1, B1 0.402%, 04/15/19•		2,398		2,383,025
Citibank Credit Card Issuance Trust 1.110%, 07/23/18		2,000		2,011,804
Conseco Financial Corp. 7.650%, 04/15/19		15		15,320
CPS Auto Receivables Trust 2014-A 1.210%, 08/15/18 144A @		906		907,161
Discover Card Execution Note Trust 1.040%, 04/15/19		735		737,473
Entergy Arkansas Restoration Funding LLC 2.300%, 08/01/21		893		913,653
Enterprise Fleet Financing LLC 144A 0.910%, 09/20/18 @		1,150		1,148,887
Equity One Mortgage Pass-Through Trust 2004-1 4.145%, 04/25/34•		13		12,774
Ford Credit Auto Owner Trust 1.970%, 05/15/19		1,800		1,825,843
Ford Credit Floorplan Master Owner Trust A 1.490%, 09/15/19		1,000		1,000,794
GE Capital Credit Card Master Note Trust 0.950%, 06/15/18		2,000		2,007,320
GE Equipment Transportation LLC Series 2013-1 1.540%, 03/24/21		1,000		989,407
Golden Credit Card Trust 1.390%, 07/15/19 144A @		2,000		2,001,460
HLSS Servicer Advance Receivables Backed Notes Series 2013-T6 1.287%, 09/15/44 14A @		2,000		2,001,000
HLSS Servicer Advance Receivables Trust 144A 1.990%, 10/15/45 @		2,450		2,469,600
HLSS Servicer Advance Receivables Trust 2014-T1 144A 1.244%, 01/17/45 144A @		1,000		1,000,800
Hyundai Auto Lease Securitization Trust 2012-A 0.920%, 08/17/15 144A @		853		854,180
Hyundai Auto Lease Securitization Trust 2014-B 1.540%, 12/17/18 144A @		1,100		1,102,335

	Par (000)		Value†
New Residential Advance Receivables Trust Advance Receivables Backed 2014-T1 1.274%, 03/15/45 144A @	$	1,000	$	1,001,100
Popular ABS Mortgage Pass-Through Trust 2004-4 4.628%, 09/25/34•		12		12,466
SACO I, Inc. 1.052%, 06/25/35 144A @•		273		261,160
Volvo Financial Equipment LLC Series 2013-1 1.620%, 08/17/20 144A @		1,000		1,002,825
World Financial Network Credit Card Master Trust 1.760%, 05/17/21		1,782		1,800,372
TOTAL ASSET BACKED SECURITIES (Cost $38,626,205)				38,672,537
COMMERCIAL MORTGAGE BACKED SECURITIES — 13.0%
BAMLL Commercial Mortgage Securities Trust 2013-DSNY 1.652%, 09/15/26 144A @•		1,000		1,003,431
Boca Hotel Portfolio Trust 2013-BOCA 1.902%, 08/15/26 144A @		1,000		1,002,089
CSMC Trust 2014-SURF 1.010%, 02/15/29 144A @•		1,000		1,000,942
EMAC Owner Trust 2000-1 6.552%, 01/15/27 144A		338		245,685
Fannie Mae - Aces Series 2014-M2 Class ASV1 1.916%, 06/25/21		9,647		9,755,852
Fannie Mae Connecticut Avenue Securities 2.152%, 10/25/23•		913		937,648
FHLMC Multifamily Structured Pass-Through K501-A1 1.337%, 06/25/16		1,562		1,575,163
Freddie Mac Structured Agency Credit Risk Debt Notes 1.152%, 02/25/24•		972		975,342
FREMF Mortgage Trust Series 2013-KF02 Class C 2.821%, 12/25/45 144A		1,810		1,907,938
GS Mortgage Securities Corp. II 1.601%, 11/08/29 144A @•		1,000		1,007,517
Hilton USA Trust 2013-HLF 2.901%, 11/05/30 144A @•		1,000		1,004,401
JPMorgan Chase Commercial Mortgage Securities Trust 2013-JWRZ 1.302%, 04/15/30 144A @•		1,500		1,497,846
JPMorgan Chase Commercial Mortgage Securities Trust 2014-FBLU Class A 1.102%, 12/15/28 144A @•		1,000		1,000,191
Morgan Stanley Capital I Trust 2005-Top19 4.890%, 06/12/47		4,987		5,140,725
Morgan Stanley Capital I Trust 2006-Iq12 5.332%, 12/15/43		3,283		3,536,428
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost $31,543,204)				31,591,198

48

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Limited Maturity Bond Fund

	Par (000)		Value†
CORPORATE BONDS — 48.5%
Aerospace & Defense — 0.9%
BAE Systems PLC 3.500%, 10/11/16 144A @	$	1,000	$	1,040,795
Lockheed Martin Corp. 2.125%, 09/15/16		1,000		1,029,437
				2,070,232
Agriculture — 0.4%
Altria Group, Inc. 4.125%, 09/11/15		1,000		1,040,511
Airlines — 2.5%
American Airlines 2013-2 Class C Pass-ThroughTrust 6.000%, 01/15/17 144A @		1,000		1,057,500
Continental Airlines 2009-1 Pass-Through Trust 9.000%, 07/08/16		1,007		1,138,441
Delta Air Lines 2010-2 Class B Pass-Through Trust 6.750%, 11/23/15		2,700		2,889,000
UAL 2009-2A Pass-Through Trust 9.750%, 01/15/17		901		1,032,175
				6,117,116
Auto Parts & Equipment — 0.5%
Johnson Controls, Inc. 2.600%, 12/01/16		1,105		1,145,059
Banks — 4.7%
Bank of America Corp. 3.750%, 07/12/16		1,000		1,051,959
Citigroup, Inc. 3.953%, 06/15/16		2,000		2,110,152
JPMorgan Chase & Co. 3.150%, 07/05/16		2,000		2,084,698
Royal Bank of Canada 1.450%, 09/09/16		1,000		1,013,087
The Toronto-Dominion Bank 1.625%, 09/14/16 144A @		2,000		2,036,800
Wells Fargo & Co. 2.625%, 12/15/16		2,000		2,078,824
Westpac Banking Corp. 3.585%, 08/14/14 144A @		1,000		1,003,863
				11,379,383
Beverages — 2.7%
Anheuser-Busch InBev Worldwide, Inc. 0.800%, 07/15/15		1,000		1,004,500
Brown-Forman Corp. 2.500%, 01/15/16		1,400		1,439,644
Coca-Cola Enterprises, Inc. 2.125%, 09/15/15		1,000		1,018,313
Constellation Brands, Inc. 7.250%, 05/15/17		1,000		1,146,250
Diageo Capital PLC 1.500%, 05/11/17		1,000		1,011,448
SABMiller Holdings, Inc. 1.850%, 01/15/15 144A @		1,000		1,007,033
				6,627,188

	Par (000)		Value†
Biotechnology — 0.9%
Amgen, Inc. 2.500%, 11/15/16	$	1,000	$	1,035,762
Celgene Corp. 2.450%, 10/15/15		1,000		1,019,712
				2,055,474
Chemicals — 0.5%
Ecolab, Inc. 1.000%, 08/09/15		1,200		1,205,869
Diversified Financial Services — 6.1%
AerCap Aviation Solutions BV 6.375%, 05/30/17		1,000		1,102,500
American Honda Finance Corp. 1.125%, 10/07/16		1,000		1,005,880
Caisse Centrale Desjardins 2.550%, 03/24/16 144A @		3,000		3,100,830
Ford Motor Credit Co. LLC 8.000%, 12/15/16		2,000		2,323,260
General Electric Capital Corp. 1.000%, 12/11/15		1,000		1,007,686
2.300%, 04/27/17		1,000		1,032,858
Icahn Enterprises LP 3.500%, 03/15/17		1,000		1,011,250
John Deere Capital Corp. 1.050%, 10/11/16		1,000		1,004,846
USAA Capital Corp. 2.250%, 12/13/16 144A @		1,000		1,030,773
Vesey Street Investment Trust I 4.404%, 09/01/16		2,000		2,133,758
				14,753,641
Electric — 2.1%
Duke Energy Corp. 2.150%, 11/15/16		1,000		1,028,654
Israel Electric Corp. Ltd. 6.700%, 02/10/17 144A @		1,000		1,091,556
LG&E and KU Energy LLC 2.125%, 11/15/15		1,000		1,013,554
NextEra Energy Capital Holdings, Inc. 1.339%, 09/01/15		1,000		1,007,340
PECO Energy Co. 1.200%, 10/15/16		1,000		1,008,713
				5,149,817
Electronics — 0.4%
Thermo Fisher Scientific, Inc. 1.300%, 02/01/17		1,000		1,001,474
Energy-Alternate Sources — 0.4%
BP Capital Markets PLC 1.700%, 12/05/14		1,000		1,005,821
Environmental Control — 0.4%
Waste Management, Inc. 2.600%, 09/01/16		1,000		1,034,623

49

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Limited Maturity Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Food — 2.8%
ConAgra Foods, Inc. 1.300%, 01/25/16	$	1,000	$	1,008,309
Mondelez International, Inc. 4.125%, 02/09/16		1,000		1,051,572
The Kroger Co. 1.200%, 10/17/16		2,000		2,006,568
Tyson Foods, Inc. 6.600%, 04/01/16		2,000		2,190,736
WM Wrigley Jr. Co. 1.400%, 10/21/16 144A @		500		503,463
				6,760,648
Gas — 1.3%
Florida Gas Transmission Co., LLC 4.000%, 07/15/15 144A @		1,000		1,029,115
Questar Corp. 2.750%, 02/01/16		1,000		1,027,778
Sabine Pass LNG LP 7.500%, 11/30/16		1,000		1,105,000
				3,161,893
Healthcare Products — 2.3%
Baxter International, Inc. 0.950%, 06/01/16		1,000		1,004,279
Boston Scientific Corp. 6.400%, 06/15/16		2,000		2,205,472
CareFusion Corp. 1.450%, 05/15/17		1,000		999,253
Covidien International Finance S.A. 1.350%, 05/29/15		1,317		1,327,690
				5,536,694
Healthcare Services — 1.3%
Fresenius Medical Care US Finance, Inc. 6.875%, 07/15/17		1,000		1,132,500
Quest Diagnostics, Inc. 5.450%, 11/01/15		1,000		1,059,421
WellPoint, Inc. 1.250%, 09/10/15		1,000		1,007,634
				3,199,555
Insurance — 0.8%
Metropolitan Life Global Funding I 2.000%, 01/09/15 144A @		1,000		1,008,118
Principal Life Global Funding II 1.000%, 12/11/15 144A @		1,000		1,005,317
				2,013,435
Machinery — Diversified — 1.3%
CNH Capital LLC 3.875%, 11/01/15		2,000		2,040,000
Xylem, Inc. 3.550%, 09/20/16		1,165		1,227,337
				3,267,337

	Par (000)		Value†
Media — 1.7%
NBCUniversal Media LLC 3.650%, 04/30/15	$	1,000	$	1,027,140
Thomson Reuters Corp. 0.875%, 05/23/16		1,000		999,592
1.300%, 02/23/17		1,000		1,001,249
Time Warner, Inc. 5.875%, 11/15/16		1,000		1,113,498
				4,141,479
Mining — 0.4%
Rio Tinto Finance USA PLC 0.781%, 06/19/15•		1,000		1,003,143
Oil & Gas — 1.7%
BG Energy Capital PLC 2.500%, 12/09/15 144A @		1,000		1,022,653
Chesapeake Energy Corp. 6.500%, 08/15/17		1,000		1,120,000
Ensco PLC 3.250%, 03/15/16		1,000		1,040,749
Statoil ASA 3.125%, 08/17/17		1,000		1,058,385
				4,241,787
Oil & Gas Services — 0.9%
Cameron International Corp. 1.150%, 12/15/16		1,000		1,000,134
Schlumberger Investment SA 1.950%, 09/14/16 144A @		1,035		1,059,199
				2,059,333
Pharmaceuticals — 3.2%
AbbVie, Inc. 1.200%, 11/06/15		2,000		2,013,504
Express Scripts Holding Co. 3.125%, 05/15/16		1,000		1,041,825
Mckesson Corp. 0.950%, 12/04/15		500		502,017
1.292%, 03/10/17		1,000		1,002,643
Merck & Co., Inc. 0.700%, 05/18/16		1,000		1,002,948
Mylan, Inc. 1.800%, 06/24/16		1,260		1,277,843
Perrigo Co., PLC 1.300%, 11/08/16 144A @		1,000		998,511
				7,839,291
Pipelines — 1.3%
Enbridge, Inc. 4.900%, 03/01/15		1,000		1,028,287
Kinder Morgan Energy Partners LP 3.500%, 03/01/16		1,000		1,041,236
Spectra Energy Partners LP 2.950%, 06/15/16		1,000		1,037,527
				3,107,050

50

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Limited Maturity Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Retail — 1.8%
Costco Wholesale Corp. 5.500%, 03/15/17	$	1,000	$	1,120,089
CVS Caremark Corp. 1.200%, 12/05/16		1,000		1,006,112
Macy’s Retail Holdings, Inc. 5.900%, 12/01/16		1,910		2,128,538
				4,254,739
Semiconductors — 0.8%
Micron Semiconductor Asia Pte Ltd. 1.258%, 01/15/19		1,000		999,860
Samsung Electronics America, Inc. 1.750%, 04/10/17 144A @		1,000		1,004,676
				2,004,536
Telecommunications — 2.7%
America Movil S.A.B. de C.V. 2.375%, 09/08/16		1,000		1,028,230
AT&T, Inc. 0.900%, 02/12/16		1,000		1,002,646
British Telecommunications PLC 1.625%, 06/28/16		1,000		1,013,775
Crown Castle Towers LLC 3.214%, 08/15/15 144A @		540		548,610
Deutsche Telekom International Finance B.V. 3.125%, 04/11/16 144A @		1,000		1,038,644
Verizon Communications, Inc. 2.500%, 09/15/16		1,000		1,030,743
1.350%, 06/09/17		1,000		999,666
				6,662,314
Transportation — 0.9%
Burlington Northern Santa Fe LLC 5.650%, 05/01/17		1,000		1,122,701
Canadian National Railway Co. 1.450%, 12/15/16		1,000		1,013,692
				2,136,393
Trucking and Leasing — 0.8%
GATX Corp. 1.250%, 03/04/17		1,000		996,559
TTX Co. 5.400%, 02/15/16 144A @		1,000		1,055,133
				2,051,692
TOTAL CORPORATE BONDS (Cost $117,563,259)				118,027,527
COMMERCIAL PAPER — 0.4%
Diversified Financial Services — 0.4%
Ford Motor Credit 0.301%, 07/01/14 (Cost $1,000,000)		1,000		1,000,000

	Par (000)		Value†
RESIDENTIAL MORTGAGE BACKED SECURITIES — 1.2%
Collateralized Mortgage Obligations — 0.7%
Fannie Mae REMICS 0.552%, 11/25/39•	$	1,596	$	1,597,725
Fannie Mae Pool — 0.5%
4.000%, 06/01/20		244		259,206
2.577%, 12/01/33•		563		605,506
2.273%, 04/01/34•		151		160,637
2.440%, 07/01/36•		164		174,133
				1,199,482
TOTAL RESIDENTIAL MORTGAGE BACKED SECURITIES (Cost $2,735,146)				2,797,207
U.S. TREASURY OBLIGATIONS — 19.5%
U.S. Treasury Note
2.000%, 04/30/16		19,000		19,559,607
0.500%, 06/15/16		18,000		18,022,500
0.875%, 05/15/17		9,800		9,813,014
TOTAL U.S. TREASURY OBLIGATIONS (Cost $47,386,547)				47,395,121
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		3,720,510		3,720,510
Federated Prime Obligations Fund - Class I		407		407
Fidelity Institutional Prime Money Market Portfolio		1,020		1,020
Fidelity Institutional Prime Money Market Portfolio - Class I		198		198
Wells Fargo Advantage Government Money Market Fund - Institutional Class		77		77
Wells Fargo Advantage Heritage Money Market Fund - Institutional Class		5		5
Wells Fargo Advantage Municipal Cash Management Money Market Fund - Institutional Class		1		1
TOTAL SHORT-TERM INVESTMENTS (Cost $3,722,218)				3,722,218
TOTAL INVESTMENTS — 100.0% (Cost $242,576,579)			$	243,205,808

† See Security Valuation Note.

@ Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “accredited investors”. Unless otherwise indicated, the security is considered liquid.

• Variable Rate Security.

LLC — Limited Liability Company.

LP — Limited Partnership.

51

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Limited Maturity Bond Fund

PLC — Public Limited Company.

REMICS — Real Estate Mortgage Investment Conduits.

Country Weightings as of 06/30/2014††
United States	88	%
Canada	5
United Kingdom	3
Luxembourg	1
Netherlands	1
Other	2
Total	100	%

†† % of total investments as of June 30, 2014

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
U.S. TREASURY OBLIGATIONS	$	47,395,121	$	—	$	47,395,121	$	—
ASSET BACKED SECURITIES		39,810,978		—		39,810,978		—
COMMERCIAL MORTGAGE BACKED SECURITIES		31,591,198		—		31,591,198		—
CORPORATE BONDS		116,889,086		—		116,889,086		—
RESIDENTIAL MORTGAGE BACKED SECURITIES		2,797,207		—		2,797,207		—
COMMERCIAL PAPER		1,000,000		—		1,000,000		—
SHORT-TERM INVESTMENTS		3,722,218		3,722,218		—		—
TOTAL INVESTMENTS	$	243,205,808	$	3,722,218	$	239,483,590	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

52

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Quality Bond Fund

	Par (000)		Value†
AGENCY OBLIGATION — 1.3%
Federal National Mortgage Association — 1.3%
5.000%, 04/15/15 (Cost $6,793,787)	$	6,750	$	7,007,121
ASSET BACKED SECURITIES — 16.3%
American Express Credit Account Master Trust 0.770%, 05/15/18		2,727		2,729,574
Carmax Auto Owner Trust 2014-2 0.980%, 01/15/19		6,000		6,004,260
Centerpoint Energy Transition Bond Co. LLC 0.901%, 04/15/18		12,480		12,500,875
Chase Issuance Trust 0.590%, 08/15/17		20,000		20,029,880
Conseco Financial Corp. 7.240%, 11/15/28•		445		254,599
Enterprise Fleet Financing LLC 0.910%, 09/20/18 144A @		4,600		4,595,547
Ford Credit Floorplan Master Owner Trust A 0.850%, 01/15/18		17,000		17,056,661
GE Capital Credit Card Master Note Trust 0.950%, 06/15/18		5,000		5,018,300
HLSS Servicer Advance Receivables Trust 1.990%, 10/15/45 144A @		10,000		10,080,000
HLSS Servicer Advance Receivables Trust 2014-T1 1.244%, 01/17/45 144A @		1,000		1,000,800
Hyundai Auto Lease Securitization Trust 2012-A 0.920%, 08/17/15 144A @		2,276		2,277,813
SACO I, Inc. 1.052%, 06/25/35 144A @•		818		783,481
SLM Student Loan Trust 2008-5 1.929%, 07/25/23•		3,000		3,146,394
TOTAL ASSET BACKED SECURITIES (Cost $85,721,352)				85,478,184
COMMERCIAL MORTGAGE BACKED SECURITIES — 4.7%
Boca Hotel Portfolio Trust 2013-BOCA 1.302%, 08/15/26 144A @•		777		778,081
1.902%, 08/15/26 144A @•		1,000		1,002,089
CFCRE Commercial Mortgage Trust 4.961%, 04/15/44 144A @•		1,000		1,124,503
Citigroup Deutsche Bank Commercial Mortgage Trust 5.322%, 12/11/49		1,500		1,631,913
EMAC Owner Trust 2000-1 6.552%, 01/15/27 144A @•		675		491,369
FHLMC Multifamily Structured Pass Through Trust Series K032 3.310%, 05/25/23		10,000		10,413,540
FREMF Mortgage Trust Series 2013-K28 Class C 3.614%, 03/25/23 144A @		1,000		966,670

	Par (000)		Value†
FREMF Mortgage Trust Series 2013-K35 Class C 3.947%, 12/15/45 144A @	$	1,000	$	995,925
FREMF Mortgage Trust Series 2013-KF02 Class C 2.821%, 12/25/45 144A @		1,810		1,907,938
Hilton USA Trust 2013-HLT 4.407%, 11/05/30 144A @		1,000		1,035,505
JP Morgan Chase Commercial Mortgage Securities Trust 2014-FBLU 1.652%, 12/15/28 144A @•		1,900		1,908,288
JPMorgan Chase Commercial Mortgage Securities Trust 2007-LDP10 5.420%, 01/15/49		1,422		1,553,133
JPMorgan Chase Commercial Mortgage Securities Trust 2014-FBLU Class A 1.102%, 12/15/28 144A @•		1,000		1,000,191
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost $23,505,069)				24,809,145
CORPORATE BONDS — 19.1%
Agriculture — 0.2%
Japan Tobacco, Inc. 2.100%, 07/23/18 144A @		1,000		1,008,743
Airlines — 1.8%
American Airlines 2013-1 Class A Pass Through Trust 4.000%, 07/15/25 144A @		973		991,151
American Airlines 2013-2 Class B Pass Through Trust 5.600%, 07/15/20		1,121		1,176,641
Continental Airlines 2009-1 Pass-Through Trust 9.000%, 07/08/16		387		437,862
Continental Airlines 2012-2 Class A Pass Through Trust 4.000%, 10/29/24		972		991,071
Delta Air Lines 2007-1 Class A Pass Through Trust 6.821%, 08/10/22		976		1,151,569
Northwest Airlines 2007-1 Class A Pass Through Trust 7.027%, 11/01/19		1,425		1,638,267
UAL 2009-1 Pass Through Trust 10.400%, 11/01/16		990		1,126,206
US Airways 2012-1 Class A Pass Through Trust 5.900%, 10/01/24		1,854		2,090,608
				9,603,375
Auto Manufacturers — 0.2%
General Motors Co. 6.250%, 10/02/43 144A @		1,000		1,147,500
Banks — 1.4%
Bank of America Corp. 5.650%, 05/01/18		1,000		1,133,537

53

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Quality Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Banks — (continued)
Bank of Montreal 2.850%, 06/09/15 144A @	$	1,000	$	1,023,670
JPMorgan Chase & Co. 6.000%, 01/15/18		1,700		1,946,702
Royal Bank of Canada 1.450%, 09/09/16		1,000		1,013,087
The Bank of New York Mellon Corp. 2.100%, 08/01/18		1,000		1,014,253
The Goldman Sachs Group, Inc. 5.250%, 07/27/21		1,000		1,122,933
				7,254,182
Beverages — 0.2%
The Coca-Cola Co. 3.300%, 09/01/21		1,000		1,041,058
Biotechnology — 0.6%
Amgen, Inc. 4.950%, 10/01/41		1,000		1,052,421
Biogen Idec, Inc. 6.875%, 03/01/18		1,000		1,177,197
Genentech, Inc. 5.250%, 07/15/35		1,000		1,153,365
				3,382,983
Commercial Services — 0.2%
Erac USA Finance LLC 2.350%, 10/15/19 144A @~		1,000		998,530
Computers — 0.2%
Hewlett-Packard Co. 2.600%, 09/15/17		1,000		1,033,547
Diversified Financial Services — 2.3%
Altitude Investments 12 LLC 2.454%, 12/09/25		2,465		2,443,979
Caisse Centrale Desjardins du Quebec 2.550%, 03/24/16 144A @		2,000		2,067,220
General Electric Capital Corp. 5.875%, 01/14/38		1,000		1,213,205
Safina Ltd. 2.000%, 12/30/23		4,213		4,153,371
Toyota Motor Credit Corp. 3.400%, 09/15/21		1,000		1,043,099
USAA Capital Corp. 2.250%, 12/13/16 144A @		1,000		1,030,773
				11,951,647
Electric — 0.8%
Commonwealth Edison Co. 6.150%, 09/15/17		500		574,543
Enel Finance International NV 6.250%, 09/15/17 144A @		1,000		1,141,043
International Transmission Co. 4.625%, 08/15/43 144A @		1,000		1,078,079
Wisconsin Public Service Corp. 4.752%, 11/01/44		1,100		1,217,711
				4,011,376

	Par (000)		Value†
Food — 1.0%
ConAgra Foods,Inc. 1.900%, 01/25/18	$	1,000	$	1,002,411
The Hillshire Brands Co. 2.750%, 09/15/15		1,000		1,018,270
Unilever Capital Corp. 0.850%, 08/02/17		2,000		1,984,198
WM Wrigley Jr. Co. 2.400%, 10/21/18 144A @		1,000		1,015,709
				5,020,588
Gas — 0.7%
Centrica PLC 5.375%, 10/16/43 144A @		1,000		1,052,541
Pacific Gas & Electric Co. 3.250%, 09/15/21		1,000		1,031,374
Sabine Pass LNG LP 7.500%, 11/30/16		1,380		1,524,900
				3,608,815
Healthcare Products — 2.0%
CareFusion Corp. 3.300%, 03/01/23		1,103		1,064,483
CareFusion Corp. 4.875%, 05/15/44		2,000		2,020,342
Covidien International Finance SA 6.000%, 10/15/17		1,000		1,143,910
3.200%, 06/15/22		1,000		1,005,863
Edwards Lifesciences Corp. 2.875%, 10/15/18		1,000		1,021,897
Medtronic, Inc. 4.000%, 04/01/43		1,000		952,348
St Jude Medical, Inc. 4.750%, 04/15/43		1,000		1,026,785
Stryker Corp. 2.000%, 09/30/16		1,000		1,025,746
Zimmer Holdings, Inc. 4.625%, 11/30/19		1,000		1,106,389
				10,367,763
Investment Companies — 0.2%
Ares Capital Corp. 4.875%, 11/30/18		1,000		1,063,042
Media — 0.7%
Belo Corp. 7.750%, 06/01/27		1,000		1,100,000
Comcast Cable Holdings LLC 9.875%, 06/15/22		1,000		1,377,225
Viacom, Inc. 5.850%, 09/01/43		1,000		1,148,828
				3,626,053
Mining — 1.0%
Barrick Gold Corp. 5.250%, 04/01/42		2,000		1,957,016
BHP Billiton Finance (USA) Ltd. 5.000%, 09/30/43		1,000		1,105,185

54

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Quality Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Mining — (continued)
Corp Nacional del Cobre de Chile 3.000%, 07/17/22 144A @	$	1,000	$	968,485
Goldcorp, Inc. 3.625%, 06/09/21		1,000		1,011,382
				5,042,068
Miscellaneous Manufacturing — 0.2%
Siemens Financieringsmaatschappij NV 6.125%, 08/17/26 144A @		1,000		1,242,790
Oil & Gas — 1.5%
BG Energy Capital PLC 4.000%, 10/15/21 144A @		1,000		1,061,102
BP Capital Markets PLC 4.500%, 10/01/20		1,000		1,106,461
Petrobras International Finance Co. 6.750%, 01/27/41		500		515,000
Petroleos Mexicanos 1.950%, 12/20/22 W.I.		1,700		1,687,306
2.000%, 12/20/22		2,550		2,536,365
Shell International Finance BV 4.550%, 08/12/43		1,000		1,053,289
				7,959,523
Oil & Gas Services — 0.2%
Schlumberger Oilfield PLC 4.200%, 01/15/21 144A @		1,000		1,094,553
Pharmaceuticals — 1.4%
AbbVie, Inc. 1.200%, 11/06/15		1,000		1,006,752
GlaxoSmithKline Capital, Inc. 5.375%, 04/15/34		1,000		1,174,622
Novartis Capital Corp. 2.900%, 04/24/15		1,000		1,021,277
4.400%, 05/06/44		1,000		1,040,807
Perrigo Co. PLC 4.000%, 11/15/23 144A @		1,000		1,016,366
Takeda Pharmaceutical Co., Ltd. 1.625%, 03/17/17 144A @		2,000		2,022,936
				7,282,760
Pipelines — 0.2%
DCP Midstream LLC 6.750%, 09/15/37 144A @		1,000		1,192,231
Retail — 0.6%
CVS Caremark Corp. 5.750%, 05/15/41		1,000		1,199,027
Wal-Mart Stores, Inc. 3.250%, 10/25/20		1,000		1,050,122
4.300%, 04/22/44		1,000		1,010,006
				3,259,155
Software — 0.2%
Microsoft Corp. 3.625%, 12/15/23		1,000		1,045,347

	Par (000)		Value†
Telecommunications — 0.8%
AT&T, Inc. 3.875%, 08/15/21	$	1,000	$	1,063,854
5.350%, 09/01/40		1,000		1,087,720
British Telecommunications PLC 1.625%, 06/28/16		1,000		1,013,775
Verizon Communications, Inc. 4.600%, 04/01/21		1,000		1,103,034
				4,268,383
Transportation — 0.3%
Federal Express Corp 1999 Pass Through Trust 7.650%, 01/15/22		1,153		1,408,957
Trucking and Leasing — 0.2%
TTX Co. 5.400%, 02/15/16 144A @		1,000		1,055,133
TOTAL CORPORATE BONDS (Cost $95,099,736)				99,970,102
MUNICIPAL NOTE — 0.4%
Province of British Columbia 2.850%, 06/15/15 (Cost $1,999,790)		2,000		2,049,800
MUNICIPAL BONDS — 1.7%
Corpus Christi Independent School District 6.124%, 08/15/32		1,000		1,149,930
Metropolitan Water District of Southern California 6.947%, 07/01/40		1,000		1,166,970
Orange County Sanitation District 6.400%, 02/01/44		1,000		1,309,420
San Francisco City & County Public Utilities Commission 6.950%, 11/01/50		2,000		2,801,060
South Carolina State Public Service Authority 5.784%, 12/01/41		2,000		2,322,220
Total MUNICIPAL BONDS (Cost $7,002,264)				8,749,600
RESIDENTIAL MORTGAGE BACKED SECURITIES — 21.9%
Collateralized Mortgage Obligations — 2.1%
Fannie Mae REMICS 0.552%, 11/25/39•		1,596		1,597,726
Fannie Mae REMICS 4.000%, 11/25/40		5,986		6,225,766
Freddie Mac REMICS 0.491%, 05/15/37•		3,052		3,049,877
				10,873,369
Fannie Mae Pool — 15.7%
5.000%, 07/01/23		784		843,142
2.273%, 04/01/34•		453		481,910
2.440%, 07/01/36•		546		580,443

55

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Quality Bond Fund

	Par (000)		Value†
RESIDENTIAL MORTGAGE BACKED SECURITIES — (continued)
Fannie Mae Pool — (continued)
2.383%, 08/01/36•	$	489	$	520,656
2.856%, 05/01/37•		495		500,242
3.500%, 03/01/41		1,632		1,682,901
3.000%, 11/01/42		29,758		29,446,760
2.500%, 01/01/43		3,586		3,403,490
2.500%, 02/01/43		10,419		9,889,275
3.000%, 03/01/43		21,431		21,174,878
2.500%, 05/01/43		12,535		11,897,854
3.500%, 09/01/43		2,186		2,253,853
				82,675,404
Freddie Mac Gold Pool — 2.6%
3.000%, 01/01/26		4,654		4,829,987
3.500%, 12/01/40		4,627		4,762,686
3.500%, 01/01/41		3,045		3,133,881
3.500%, 02/01/41		865		889,777
				13,616,331
Ginnie Mae Pool — 1.5%
6.000%, 10/15/38		578		650,024
6.000%, 10/15/38		423		475,181
3.500%, 10/20/41		6,388		6,667,091
9.000%, 10/15/30		8		7,772
				7,800,068
TOTAL RESIDENTIAL MORTGAGE BACKED SECURITIES (Cost $113,228,102)				114,965,172
U.S. TREASURY OBLIGATIONS — 30.0%
U.S. Treasury Bond 2.750%, 08/15/42		5,000		4,471,875
3.125%, 02/15/43		3,685		3,547,387
3.625%, 08/15/43		3,450		3,644,063
3.750%, 11/15/43		10,668		11,523,104
3.625%, 02/15/44		1,800		1,899,844
U.S. Treasury Inflation Indexed Bond 0.625%, 01/15/24		15,000		15,791,207
U.S. Treasury Note 0.375%, 03/31/16		10,000		10,001,950
0.375%, 04/30/16		51,000		50,984,088
0.625%, 08/15/16		1,150		1,152,785
0.625%, 12/15/16		33,300		33,281,785
0.875%, 12/31/16		3,750		3,769,628
0.875%, 04/15/17		2,550		2,556,176
0.625%, 08/31/17		12,000		11,868,744
2.500%, 05/15/24		2,500		2,496,485
TOTAL U.S. TREASURY OBLIGATIONS (Cost $155,843,603)				156,989,121
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 4.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		24,263,934		24,263,934
BlackRock Liquidity Funds TempFund - Institutional Shares		447		447

	Number of Shares		Value†
Federated Prime Obligations Fund - Class I		313	$	313
Fidelity Institutional Prime Money Market Portfolio		714		714
Fidelity Institutional Prime Money Market Portfolio - Class I		272		272
Wells Fargo Advantage Government Money Market Fund - Institutional Class		52		52
Wells Fargo Advantage Heritage Money Market Fund - Institutional Class		1		1
Wells Fargo Advantage Municipal Cash Management Money Market Fund - Institutional Class		1		1
TOTAL SHORT-TERM INVESTMENTS (Cost $24,265,734)				24,265,734
TOTAL INVESTMENTS — 100.0% (Cost $513,471,470)			$	524,283,979

† See Security Valuation Note.

@ Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “accredited investors”. Unless otherwise indicated, the security is considered liquid.

• Variable Rate Security.

~ Fair valued security. The total market value of fair valued securities at June 30, 2014 is $998,530.

LLC — Limited Liability Company.

LP — Limited Partnership.

PLC — Public Limited Company.

REMICS — Real Estate Mortgage Investment Conduits.

Country Weightings as of 06/30/2014††
United States	94	%
Canada	1
Japan	1
Luxembourg	1
Mexico	1
United Kingdom	1
Other	1
Total	100	%

†† % of total investments as of June 30, 2014

56

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Quality Bond Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
U.S. TREASURY OBLIGATIONS	$	156,989,121	$	—	$	156,989,121	$	—
AGENCY OBLIGATION		7,007,121		—		7,007,121		—
ASSET BACKED SECURITIES		85,478,184		—		85,478,184		—
COMMERCIAL MORTGAGE BACKED SECURITIES		24,809,145		—		24,809,145		—
CORPORATE BONDS		99,970,102		—		99,970,102		—
RESIDENTIAL MORTGAGE BACKED SECURITIES		114,965,172		—		114,965,172		—
MUNICIPAL NOTES		2,049,800		—		2,049,800		—
MUNICIPAL BONDS		8,749,600		—		8,749,600		—
SHORT-TERM INVESTMENTS		24,265,734		24,265,734		—		—
TOTAL INVESTMENTS	$	524,283,979	$	24,265,734	$	500,018,245	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

57

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
ASSET BACKED SECURITIES — 0.2%
Continental Airlines 2009-2 Class A, Pass Through Trust 7.250%, 11/10/19	$	40	$	46,840
Continental Airlines 2009-2 Class B Pass Through Trust 9.250%, 05/10/17 144A ^		28		30,993
Continental Airlines 2012-3 Class C Pass Thru Certificates 6.125%, 04/29/18		325		347,750
TOTAL ASSET BACKED SECURITIES (Cost $392,583)				425,583
	Number of Shares		Value†
COMMON STOCKS — 1.0%
Auto Manufacturers — 0.2%
General Motors Co.		9,300		337,590
Building Materials — 0.1%
Masonite International Corp.*		4,900		275,674
Entertainment — 0.0%
New Cotai Participation Class B*144A @^~		1		27,313
Media — 0.3%
Liberty Global PLC, Class A*		4,100		181,302
Liberty Global PLC, Series C*		2,300		97,313
Time Warner Cable, Inc.		1,400		206,220
				484,835
Oil & Gas — 0.1%
Parsley Energy, Inc., Class A*		5,200		125,164
Range Resources Corp.		1,845		160,423
				285,587
Real Estate — 0.1%
The Howard Hughes Corp.*		1,600		252,528
Telecommunications — 0.2%
Altice S.A.*		2,697		187,900
Crown Castle International Corp.*		1,750		129,955
				317,855
TOTAL COMMON STOCKS (Cost $1,643,960)				1,981,382
PREFERRED STOCKS — 0.6%
Banks — 0.3%
Ally Financial, Inc.144A @		500		501,265
Diversified Financial Services — 0.1%
Federal National Mortgage Association*		23,300		241,155
Oil & Gas — 0.1%
Penn Virginia Corp.*144A @		1,300		151,454
Packaging and Containers — 0.0%
Smurfit-Stone Container Corp. (Escrow) CONV.*^~		725		0

	Number of Shares		Value†
Telecommunications — 0.1%
Crown Castle International Corp.*		2,450	$	249,704
TOTAL PREFERRED STOCKS (Cost $969,692)				1,143,578
	Par (000)		Value†
REAL ESTATE INVESTMENT TRUSTS — 0.1%
Diversified — 0.1%
American Tower Corp.	$	1,375		123,722
American Tower Corp.*		1,207		128,425
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $193,806)				252,147
CORPORATE BONDS — 89.0%
Advertising — 0.4%
CBS Outdoor Americas Capital LLC 5.625%, 02/15/24 144A @		225		232,313
MDC Partners, Inc. 6.750%, 04/01/20 144A @		525		553,875
				786,188
Aerospace & Defense — 0.5%
Accudyne Industries LLC 7.750%, 12/15/20 144A @		225		240,750
Ducommun, Inc. 9.750%, 07/15/18		300		333,843
Kratos Defense & Security Solutions, Inc. 7.000%, 05/15/19 144A @		250		260,000
TransDigm, Inc. 6.500%, 07/15/24 144A @		200		208,250
				1,042,843
Airlines — 1.4%
Air Canada 7.750%, 04/15/21 144A @		175		185,937
Allegiant Travel Co. 5.500%, 07/15/19		175		177,844
American Airlines 2013-1 Class A Pass Through Trust 4.000%, 07/15/25 144A @		68		69,381
American Airlines 2013-1 Class B Pass Through Trust 5.625%, 01/15/21 144A @		73		75,351
American Airlines 2013-1 Class C Pass Through Trust 6.125%, 07/15/18 144A @^		200		212,000
United Continental Holdings, Inc. 6.375%, 06/01/18		325		351,000
6.000%, 12/01/20		375		391,875
6.000%, 07/15/26		325		316,875
6.000%, 07/15/28		100		96,250
US Airways 2012-2 Class A, Pass Through Trust 4.625%, 06/03/25		72		75,995

58

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Airlines — (continued)
US Airways 2012-2 Class B, Pass Through Trust 6.750%, 06/03/21	$	34	$	36,769
US Airways Group, Inc. 6.125%, 06/01/18		725		765,781
				2,755,058
Apparel — 0.9%
Boardriders S.A. 8.875%, 12/15/17 144A @		125		178,009
Hanesbrands, Inc. 6.375%, 12/15/20		250		270,313
Levi Strauss & Co. 6.875%, 05/01/22		200		220,500
QS Wholesale, Inc. 7.875%, 08/01/18 144A @		125		126,875
10.000%, 08/01/20		325		326,625
The William Carter Co. 5.250%, 08/15/21 144A @		500		521,250
Wolverine World Wide, Inc. 6.125%, 10/15/20		100		107,750
				1,751,322
Auto Manufacturers — 1.9%
Chrysler Group LLC 8.000%, 06/15/19		300		325,875
8.250%, 06/15/21		1,725		1,949,250
CNH Finance Europe S.A. 6.250%, 03/09/18		275		428,968
General Motors Co. 6.250%, 10/02/43 144A @		250		286,875
Jaguar Land Rover Automotive PLC 5.625%, 02/01/23 144A @		600		637,500
Navistar International Corp. 8.250%, 11/01/21		175		182,656
				3,811,124
Auto Parts & Equipment — 1.7%
Affinia Group, Inc. 7.750%, 05/01/21		75		78,938
Allison Transmission, Inc. 7.125%, 05/15/19 144A @		350		374,500
American Axle & Manufacturing, Inc. 5.125%, 02/15/19		100		105,000
6.250%, 03/15/21		200		215,000
6.625%, 10/15/22		175		191,625
Dana Holding Corp. 5.375%, 09/15/21		375		391,875
Gestamp Funding Luxembourg S.A. 5.625%, 05/31/20 144A @		300		312,750
Pittsburgh Glass Works LLC 8.000%, 11/15/18 144A @		175		190,312
Schaeffler Finance BV 4.750%, 05/15/21 144A @		400		412,000

	Par (000)		Value†
Auto Parts & Equipment — (continued)
Schaeffler Holding Finance BV PIK (Cash Coupon 6.875%, PIK 7.625%) 08/15/18 144A @	$	250	$	263,437
The Goodyear Tire & Rubber Co. 8.250%, 08/15/20		250		274,375
8.750%, 08/15/20		100		118,500
6.500%, 03/01/21		300		325,500
				3,253,812
Banks — 2.1%
Ally Financial, Inc. 7.500%, 09/15/20		325		391,625
8.000%, 11/01/31		225		287,437
CIT Group, Inc. 4.250%, 08/15/17		350		365,094
6.625%, 04/01/18 144A @		500		561,250
5.375%, 05/15/20		300		322,031
5.000%, 08/15/22		225		232,875
Provident Funding Associates LP 10.125%, 02/15/19 144A @		100		108,500
6.750%, 06/15/21 144A @		300		303,750
Sberbank of Russia Via SB Capital S.A. 5.125%, 10/29/22 144A @		300		284,250
5.500%, 02/26/24 144A @		200		194,500
Synovus Financial Corp. 5.125%, 06/15/17		600		625,500
7.875%, 02/15/19		300		343,500
				4,020,312
Beverages — 0.4%
Constellation Brands, Inc. 6.000%, 05/01/22		300		336,750
Cott Beverages, Inc. 5.375%, 07/01/22 144A @		375		375,938
				712,688
Building Materials — 3.0%
Ainsworth Lumber Co. Ltd. 7.500%, 12/15/17 144A @		92		96,945
Associated Materials LLC 9.125%, 11/01/17		675		700,312
Builders FirstSource, Inc. 7.625%, 06/01/21 144A @		250		267,500
Building Materials Corp. of America 6.750%, 05/01/21 144A @		250		269,375
Cemex Finance LLC 9.375%, 10/12/22 144A @		295		346,994
Cemex S.A.B. de CV 7.250%, 01/15/21 144A @		575		632,500
Euramax International, Inc. 9.500%, 04/01/16		325		323,375
Interline Brands, Inc. PIK 10.000%, 11/15/18		125		133,750
Masonite International Corp. 8.250%, 04/15/21 144A @		100		109,000

59

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Building Materials — (continued)
Nortek, Inc. 10.000%, 12/01/18	$	300	$	323,250
8.500%, 04/15/21		350		386,750
Pfleiderer Gmbh 7.875%, 08/01/19 144A @		100		136,218
Reliance Intermediate Holdings LP 9.500%, 12/15/19 144A @		225		243,000
Summit Materials LLC 10.500%, 01/31/20		375		420,938
USG Corp. 9.750%, 01/15/18		450		538,875
5.875%, 11/01/21 144A @		100		106,000
Vulcan Materials Co. 7.500%, 06/15/21		300		355,125
Wienerberger AG 6.500%, 12/29/49•		325		462,779
				5,852,686
Chemicals — 1.8%
Axalta Coating Systems US Holdings, Inc. 5.750%, 02/01/21 144A @		100		146,518
7.375%, 05/01/21 144A @		150		163,500
Celanese U.S. Holdings LLC 4.625%, 11/15/22		450		452,250
Ciech Group Financing AB 9.500%, 11/30/19 144A @		250		390,250
Hexion US Finance Corp. 8.875%, 02/01/18		600		624,000
6.625%, 04/15/20		275		291,500
INEOS Group Holdings S.A. 6.125%, 08/15/18 144A @		200		207,000
Kerling PLC 10.625%, 02/01/17 144A @		200		290,404
PolyOne Corp. 5.250%, 03/15/23		250		256,875
PQ Corp. 8.750%, 05/01/18 144A @		475		515,969
Rayonier AM Products, Inc. 5.500%, 06/01/24 144A @		250		254,375
				3,592,641
Coal — 0.9%
Alpha Natural Resources, Inc. 7.500%, 08/01/20 144A @		325		314,438
CONSOL Energy, Inc 5.875%, 04/15/22 144A @		375		392,813
Foresight Energy LLC 7.875%, 08/15/21 144A @		275		294,250
Murray Energy Corp. 8.625%, 06/15/21 144A @		375		405,937
Suncoke Energy Partners LP 7.375%, 02/01/20 144A @		150		160,125
Westmoreland Coal Co. 10.750%, 02/01/18 144A @		175		187,906
				1,755,469

	Par (000)		Value†
Commercial Services — 2.6%
Alliance Data Systems Corp. 6.375%, 04/01/20 144A @	$	275	$	292,875
American Capital Ltd. 6.500%, 09/15/18 144A @		325		346,125
Ashtead Capital, Inc. 6.500%, 07/15/22 144A @		125		136,563
Ceridian Corp. 8.875%, 07/15/19 144A @		125		141,250
CoreLogic, Inc. 7.250%, 06/01/21		350		378,437
Europcar Groupe S.A. 11.500%, 05/15/17 144A @		225		353,892
FTI Consulting, Inc. 6.750%, 10/01/20		75		80,063
6.000%, 11/15/22		325		334,344
H&E Equipment Services, Inc. 7.000%, 09/01/22		150		165,750
Harland Clarke Holdings Corp. 6.875%, 03/01/20 144A @		125		132,500
Igloo Holdings Corp. PIK (Cash Coupon 8.25%, PIK 9.000%) 12/15/17 144A @		175		178,500
Jaguar Holding Co. I PIK (Cash Coupon 9.375%, PIK 10.125%) 10/15/17 144A @		100		103,500
Jaguar Holding Co. II 9.500%, 12/01/19 144A @		350		382,375
Laureate Education, Inc. 9.250%, 09/01/19 144A @		625		643,750
Lender Processing Services, Inc. 5.750%, 04/15/23		200		214,500
Safway Group Holding LLC 7.000%, 05/15/18 144A @		250		265,000
TransUnion Holding Co, Inc. PIK (Cash Coupon 8.125%, PIK 8.875%) 06/15/18		150		156,600
Truven Health Analytics, Inc. 10.625%, 06/01/20		125		137,187
United Rentals North America, Inc. 6.125%, 06/15/23		525		563,062
				5,006,273
Computers — 0.4%
Dell, Inc. 5.650%, 04/15/18		175		187,513
5.875%, 06/15/19		275		293,562
4.625%, 04/01/21		100		98,000
SunGard Data Systems, Inc. 6.625%, 11/01/19		250		263,125
				842,200
Cosmetics & Personal Care — 0.0%
Avon Products, Inc. 4.600%, 03/15/20		90		93,330

60

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Distribution & Wholesale — 0.6%
HD Supply, Inc. 7.500%, 07/15/20	$	500	$	546,250
11.500%, 07/15/20		125		150,312
Matalan Finance PLC 6.875%, 06/01/19 144A @		225		383,619
				1,080,181
Diversified Financial Services — 3.7%
Aircastle Ltd. 6.250%, 12/01/19		350		383,250
7.625%, 04/15/20		25		29,188
Cantor Commercial Real Estate Co. LP 7.750%, 02/15/18 144A @		275		297,000
DBP Holding Corp. 7.750%, 10/15/20 144A @		275		239,250
Denali Borrower LLC 5.625%, 10/15/20 144A @		450		477,000
General Motors Financial Co., Inc. 4.750%, 08/15/17		375		398,906
3.250%, 05/15/18		250		253,750
6.750%, 06/01/18		75		85,781
Icahn Enterprises LP 4.875%, 03/15/19		350		360,500
6.000%, 08/01/20		650		696,312
Jefferies LoanCore LLC 6.875%, 06/01/20 144A @		400		404,000
Ladder Capital Finance Holdings LLLP. 7.375%, 10/01/17		200		215,500
Nationstar Mortgage LLC 6.500%, 07/01/21		500		501,250
6.500%, 06/01/22		300		300,000
Neuberger Berman Group LLC 5.625%, 03/15/20 144A @		225		237,938
5.875%, 03/15/22 144A @		200		213,500
Ocwen Financial Corp. 6.625%, 05/15/19 144A @		250		258,125
Outerwall, Inc. 6.000%, 03/15/19		450		466,875
Patriot Merger Corp. 9.000%, 07/15/21 144A @		275		299,750
Springleaf Finance Corp. 6.900%, 12/15/17		275		305,250
Walter Investment Management Corp. 7.875%, 12/15/21 144A @		875		914,375
				7,337,500
Electric — 1.2%
AES Corp. 5.500%, 03/15/24		425		434,562
CMS Energy Corp. 5.050%, 03/15/22		130		147,756
Energy Future Intermediate Holding Co. LLC 10.000%, 12/01/49		900		85,500
GenOn Energy, Inc. 9.500%, 10/15/18		475		521,312

	Par (000)		Value†
Electric — (continued)
Infinis PLC 7.000%, 02/15/19 144A @	$	300	$	551,924
NRG Energy, Inc. 6.250%, 07/15/22 144A @		325		346,125
6.625%, 03/15/23		275		297,688
				2,384,867
Electronics — 0.2%
Techem GmbH 6.125%, 10/01/19 144A @		100		147,890
Trionista Holdco GmbH 5.000%, 04/30/20 144A @		100		143,325
				291,215
Engineering & Construction — 0.6%
Aguila 3 S.A. 7.875%, 01/31/18 144A @		325		342,875
7.875%, 01/31/18 144A @		300		356,901
Deutsche Raststaetten Gruppe IV GmbH 6.750%, 12/30/20 144A @		100		147,200
Dycom Investments, Inc. 7.125%, 01/15/21		275		295,625
				1,142,601
Entertainment — 2.7%
Cedar Fair LP 5.250%, 03/15/21		275		283,250
DreamWorks Animation SKG, Inc. 6.875%, 08/15/20 144A @		275		296,313
Graton Economic Development Authority 9.625%, 09/01/19 144A @		400		455,000
Great Canadian Gaming Corp. 6.625%, 07/25/22 144A @		150		149,888
Intralot Finance Luxembourg S.A. 9.750%, 08/15/18 144A @		125		195,767
MU Finance PLC 8.375%, 02/01/17 144A @		223		232,622
National CineMedia LLC 6.000%, 04/15/22		675		703,687
New Cotai LLC PIK 10.625%, 05/01/19 144A @		528		607,429
Peninsula Gaming LLC 8.375%, 02/15/18 144A @		200		214,000
Pinnacle Entertainment, Inc. 7.500%, 04/15/21		375		404,062
6.375%, 08/01/21		325		342,875
PortAventura Entertainment Barcelona BV 7.250%, 12/01/20 144A @		100		143,092
Regal Entertainment Group 5.750%, 03/15/22		300		311,250
Six Flags Entertainment Corp. 5.250%, 01/15/21 144A @		350		358,750
Vougeot Bidco PLC 7.875%, 07/15/20 144A @		100		186,127

61

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Entertainment — (continued)
WMG Acquisition Corp. 6.000%, 01/15/21 144A @	$	138	$	142,485
6.750%, 04/15/22 144A @		275		275,000
				5,301,597
Environmental Control — 0.6%
Clean Harbors, Inc. 5.250%, 08/01/20		125		128,906
5.125%, 06/01/21		175		178,828
Darling Escrow Corp. 5.375%, 01/15/22 144A @		175		181,563
Tervita Corp. 10.875%, 02/15/18 144A @		375		378,750
8.000%, 11/15/18 144A @		350		364,000
				1,232,047
Food — 1.9%
ARAMARK Corp. 5.750%, 03/15/20		200		211,500
BI-LO LLC PIK (Cash Coupon 8.25%, PIK 9.375%) 09/15/18 144A @		250		253,750
Brakes Capital 7.125%, 12/15/18 144A @		250		437,517
Bumble Bee Holdings, Inc. 9.000%, 12/15/17 144A @		161		171,868
Elior Finance & Co. SCA 6.500%, 05/01/20 144A @		65		98,354
ESAL GmbH 6.250%, 02/05/23 144A @		605		592,900
JBS Investments GmbH 7.750%, 10/28/20 144A @		200		214,000
JBS USA LLC 5.875%, 07/15/24 144A @		525		523,687
Minerva Luxembourg S.A. 12.250%, 02/10/22 144A @		200		226,000
Post Holdings, Inc. 6.750%, 12/01/21 144A @		50		53,125
7.375%, 02/15/22 144A @		125		135,156
7.375%, 02/15/22		100		108,125
6.000%, 12/15/22 144A @		175		178,500
Premier Foods PLC 6.500%, 03/15/21 144A @		100		172,423
R&R Ice Cream PLC PIK 9.250%, 05/15/18 144A @		250		350,027
				3,726,932
Forest Products & Paper — 0.7%
Mercer International, Inc. 9.500%, 12/01/17		500		533,750
Sappi Papier Holding GmbH 7.750%, 07/15/17 144A @		200		222,500
8.375%, 06/15/19 144A @		200		220,500
6.625%, 04/15/21 144A @		400		422,000
				1,398,750

	Par (000)		Value†
Gas — 0.3%
NGL Energy Partners LP 5.125%, 07/15/19 144A @	$	275	$	275,688
Sabine Pass LNG LP 6.500%, 11/01/20		375		405,937
				681,625
Hand & Machine Tools — 0.4%
BC Mountain LLC 7.000%, 02/01/21 144A @		350		338,625
Milacron LLC 7.750%, 02/15/21 144A @		325		355,875
				694,500
Healthcare Products — 0.7%
Hologic, Inc. 6.250%, 08/01/20		550		580,250
Kinetic Concepts, Inc. 10.500%, 11/01/18		325		367,250
12.500%, 11/01/19		150		172,500
Universal Hospital Services, Inc. 7.625%, 08/15/20		325		340,437
				1,460,437
Healthcare Services — 3.3%
Aviv Healthcare Properties LP 7.750%, 02/15/19		100		106,500
Capella Healthcare, Inc. 9.250%, 07/01/17		350		367,500
Community Health Systems, Inc. 8.000%, 11/15/19		225		246,375
7.125%, 07/15/20		375		405,937
6.875%, 02/01/22 144A @		1,150		1,219,000
Fresenius Medical Care U.S. Finance II, Inc. 5.625%, 07/31/19 144A @		250		272,500
5.875%, 01/31/22 144A @		100		110,500
HCA Holdings, Inc. 6.250%, 02/15/21		275		295,281
IASIS Healthcare LLC 8.375%, 05/15/19		375		399,844
Kindred Healthcare, Inc. 6.375%, 04/15/22 144A @		200		201,000
Medi-Partenaires SAS 7.000%, 05/15/20 144A @		300		441,032
MPH Acquisition Holdings LLC 6.625%, 04/01/22 144A @		225		235,688
Priory Group No. 3 PLC 7.000%, 02/15/18 144A @		100		180,338
Select Medical Corp. 6.375%, 06/01/21		650		679,250
Tenet Healthcare Corp. 6.000%, 10/01/20		275		298,375
4.500%, 04/01/21		600		603,750
Voyage Care Bondco PLC 6.500%, 08/01/18 144A @		100		177,985

62

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Healthcare Services — (continued)
Wellcare Health Plans, Inc. 5.750%, 11/15/20	$	275	$	292,875
				6,533,730
Holding Companies — 1.1%
CeramTec Group GmbH 8.250%, 08/15/21 144A @		275		415,155
Harbinger Group, Inc. 7.875%, 07/15/19		425		464,844
7.750%, 01/15/22		200		204,750
KraussMaffei Group GmbH 8.750%, 12/15/20 144A @		250		383,404
Opal Acquisition, Inc. 8.875%, 12/15/21 144A @		350		368,375
Polish Television Holding BV PIK 11.000%, 01/15/21 144A @		200		332,466
WaveDivision Escrow LLC 8.125%, 09/01/20 144A @		75		81,000
				2,249,994
Home Builders — 0.5%
KB Home 7.000%, 12/15/21		375		408,750
Standard Pacific Corp. 10.750%, 09/15/16		175		207,156
William Lyon Homes, Inc. 8.500%, 11/15/20		400		447,500
				1,063,406
Home Furnishings — 0.1%
Tempur Sealy International, Inc. 6.875%, 12/15/20		175		191,625
Household Products & Wares — 0.8%
Reynolds Group Issuer, Inc. 9.000%, 04/15/19		950		1,005,812
9.875%, 08/15/19		225		249,188
5.750%, 10/15/20		100		105,500
Spectrum Brands, Inc. 6.375%, 11/15/20		100		107,500
6.625%, 11/15/22		100		108,250
				1,576,250
Housewares — 0.5%
Bormioli Rocco Holdings S.A. 10.000%, 08/01/18 144A @		475		695,973
RSI Home Products, Inc. 6.875%, 03/01/18 144A @		200		213,000
				908,973
Insurance — 0.7%
A-S Co-Issuer Subsidiary, Inc. 7.875%, 12/15/20 144A @		150		158,437
CNO Financial Group, Inc. 6.375%, 10/01/20 144A @		250		270,000

	Par (000)		Value†
Insurance — (continued)
Towergate Finance PLC 8.500%, 02/15/18 144A @	$	125	$	216,106
10.500%, 02/15/19 144A @		275		454,255
USI, Inc. 7.750%, 01/15/21 144A @		225		231,187
				1,329,985
Internet — 1.4%
Adria Bidco BV 7.875%, 11/15/20 144A @		275		408,565
Ancestry.Com, Inc. PIK (Cash Coupon 9.625%, PIK 10.375%) 10/15/18 144A @		350		361,812
Cerved Technologies SPA 6.375%, 01/15/20 144A @		100		148,114
Equinix, Inc. 7.000%, 07/15/21		300		331,500
5.375%, 04/01/23		325		332,313
Netflix, Inc. 5.375%, 02/01/21		475		497,562
5.750%, 03/01/24 144A @		475		496,375
Pacnet Ltd. 9.000%, 12/12/18 144A @		200		216,500
				2,792,741
Investment Companies — 0.3%
Ares Capital Corp. 4.875%, 11/30/18		475		504,945
Iron & Steel — 1.9%
AK Steel Corp. 8.375%, 04/01/22		750		795,000
ArcelorMittal 10.350%, 06/01/19		275		352,000
5.750%, 08/05/20		50		53,750
6.000%, 03/01/21		275		297,688
6.750%, 02/25/22		275		308,000
Bluescope Steel Finance Ltd. 7.125%, 05/01/18 144A @		350		375,812
Ryerson, Inc. 9.000%, 10/15/17		425		454,750
11.250%, 10/15/18		650		724,750
Steel Dynamics, Inc. 6.125%, 08/15/19		150		163,125
United States Steel Corp. 6.875%, 04/01/21		275		291,500
				3,816,375
Leisure Time — 0.6%
24 Hour Holdings IIII LLC 8.000%, 06/01/22 @		300		298,500
Cirsa Funding Luxembourg S.A. 8.750%, 05/15/18 144A @		325		461,711
Travelport LLC 11.875%, 09/01/16		150		153,000

63

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Leisure Time — (continued)
Travelport LLC PIK 13.875%, 03/01/16 144A @	$	230	$	237,350
				1,150,561
Lodging — 1.6%
Boyd Gaming Corp. 9.000%, 07/01/20		75		82,688
Caesars Entertainment Operating Co., Inc. 11.250%, 06/01/17		225		205,875
Caesars Entertainment Resort Properties LLC 11.000%, 10/01/21 144A @		325		349,375
Chester Downs & Marina LLC 9.250%, 02/01/20 144A @		400		392,000
Downstream Development Authority of the Quapaw Tribe of Oklahoma 10.500%, 07/01/19 144A @		325		350,188
MGM Resorts International 6.750%, 10/01/20		425		474,406
6.625%, 12/15/21		450		500,625
Playa Resorts Holding BV 8.000%, 08/15/20 144A @		300		323,250
Station Casinos LLC 7.500%, 03/01/21		375		409,687
				3,088,094
Machinery — Construction & Mining — 0.6%
Blueline Rental Finance Corp. 7.000%, 02/01/19 144A @		225		240,187
Terex Corp. 6.500%, 04/01/20		125		135,688
6.000%, 05/15/21		750		808,125
				1,184,000
Machinery — Diversified — 0.8%
Columbus McKinnon Corp. 7.875%, 02/01/19		275		293,562
Frigoglass Finance BV 8.250%, 05/15/18 144A @		375		544,297
Gardner Denver, Inc. 6.875%, 08/15/21 144A @		325		341,250
The Manitowoc Co., Inc. 8.500%, 11/01/20		125		139,375
5.875%, 10/15/22		225		245,250
				1,563,734
Media — 9.7%
AMC Networks, Inc. 4.750%, 12/15/22		475		475,000
Arqiva Broadcast Finance PLC 9.500%, 03/31/20 144A @		475		922,654
Cable Communications Systems NV 7.500%, 11/01/20 144A @		400		600,438
CCO Holdings LLC 5.250%, 03/15/21		75		76,875
6.625%, 01/31/22		625		671,875
5.250%, 09/30/22		400		406,000

	Par (000)		Value†
Media — (continued)
5.125%, 02/15/23	$	835	$	842,306
5.750%, 09/01/23		50		51,813
Central European Media Enterprises Ltd. 5.000%, 11/15/15		457		450,716
Cequel Communications Holdings I LLC 6.375%, 09/15/20 144A @		925		982,812
5.125%, 12/15/21 144A @		325		323,781
Clear Channel Communications, Inc. 9.000%, 12/15/19		650		693,062
Clear Channel Worldwide Holdings, Inc. 7.625%, 03/15/20		50		53,500
7.625%, 03/15/20		75		80,906
6.500%, 11/15/22		50		53,375
6.500%, 11/15/22		450		484,875
Cogeco Cable, Inc. 4.875%, 05/01/20 144A @		50		50,625
CSC Holdings LLC 6.750%, 11/15/21		300		330,000
Dex Media, Inc. PIK 14.000%, 01/29/17		370		251,872
DISH DBS Corp. 5.125%, 05/01/20		375		394,219
6.750%, 06/01/21		125		142,500
5.875%, 07/15/22		250		271,250
Gannett Co, Inc. 5.125%, 10/15/19 144A @		200		207,000
6.375%, 10/15/23 144A @		125		133,438
ION Media Networks, Inc. 11.000%, 07/31/15~		1		0
McGraw-Hill Global Education Holdings LLC 10.000%, 04/01/21		275		315,563
Mediacom Broadband LLC 6.375%, 04/01/23		250		263,750
MPL 2 Acquisition Canco, Inc. 9.875%, 08/15/18 144A @		200		215,500
Numericable Group S.A. 4.875%, 05/15/19 144A @		650		667,063
6.250%, 05/15/24 144A @		475		495,781
Sinclair Television Group, Inc. 6.125%, 10/01/22		300		313,500
Sirius XM Radio, Inc. 4.250%, 05/15/20 144A @		225		221,906
5.750%, 08/01/21 144A @		700		735,000
Starz LLC 5.000%, 09/15/19		250		260,313
Time, Inc. 5.750%, 04/15/22 144A @		275		277,750
Townsquare Radio LLC 9.000%, 04/01/19 144A @		200		221,500
TVN Finance Corp. III AB 7.375%, 12/15/20 144A @		125		193,414
Unitymedia KabelBW GmbH 9.500%, 03/15/21 144A @		450		703,161

64

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Media — (continued)
Univision Communications, Inc. 7.875%, 11/01/20 144A @	$	275	$	302,500
8.500%, 05/15/21 144A @		850		942,437
6.750%, 09/15/22 144A @		492		544,275
5.125%, 05/15/23 144A @		800		847,000
Videotron Ltd. 6.875%, 07/15/21 144A @		325		335,797
VTR Finance BV 6.875%, 01/15/24 144A @		750		805,303
WideOpenWest Finance LLC 10.250%, 07/15/19		300		337,125
13.375%, 10/15/19		450		520,875
Ziggo Bond Co. BV 8.000%, 05/15/18 144A @		325		492,863
				18,963,268
Metal Fabricate/Hardware — 0.2%
JMC Steel Group, Inc. 8.250%, 03/15/18 144A @		300		306, 000
Mining — 1.3%
Aleris International, Inc. 7.875%, 11/01/20		225		234,000
Eldorado Gold Corp. 6.125%, 12/15/20 144A @		475		479,750
First Quantum Minerals Ltd. 7.250%, 05/15/22 144A @		325		338,813
Imperial Metals Corp. 7.000%, 03/15/19 144A @		325		333,531
Magnetation LLC 11.000%, 05/15/18 144A @		250		273,125
Novelis, Inc. 8.750%, 12/15/20		175		194,250
Vedanta Resources PLC 6.000%, 01/31/19 144A @		275		284,295
Vedanta Resources PLC 8.250%, 06/07/21 144A @		350		392,000
				2,529,764
Miscellaneous Manufacturing — 0.2%
Trinseo Materials Operatiing SCA 8.750%, 02/01/19		275		296,313
Office & Business Equipment — 0.1%
CDW LLC 8.000%, 12/15/18		17		18,063
Magnolia S.A. 9.000%, 08/01/20 144A @		175		254,005
				272,068
Oil & Gas — 7.6%
Antero Resources Corp. 5.125%, 12/01/22 144A @		225		231,187
Antero Resources Finance Corp.
6.000%, 12/01/20		700		750,750
5.375%, 11/01/21		450		466,875

	Par (000)		Value†
Oil & Gas — (continued)
Athlon Holdings LP
7.375%, 04/15/21 144A @	$	625	$	681,250
6.000%, 05/01/22 144A @		250		258,750
Atwood Oceanics, Inc. 6.500%, 02/01/20		150		159,938
Baytex Energy Corp. 5.125%, 06/01/21 144A @		100		100,625
Bill Barrett Corp.
7.625%, 10/01/19		650		700,375
7.000%, 10/15/22		700		742,000
Chesapeake Energy Corp.
5.375%, 06/15/21		175		186,375
5.750%, 03/15/23		900		1,000,066
Concho Resources, Inc.
7.000%, 01/15/21		150		164,625
5.500%, 04/01/23		1,200		1,290,000
Denbury Resources, Inc. 5.500%, 05/01/22		375		383,437
Laredo Petroleum, Inc.
5.625%, 01/15/22		225		232,594
7.375%, 05/01/22		300		335,250
Parker Drilling Co. 6.750%, 07/15/22 144A @		350		364,000
Parsley Energy LLC 7.500%, 02/15/22 144A @		400		427,000
PDC Energy, Inc. 7.750%, 10/15/22		725		808,375
Penn Virginia Corp. 8.500%, 05/01/20		450		502,875
Precision Drilling Corp.
6.625%, 11/15/20		275		294,250
6.500%, 12/15/21		75		81,563
Range Resources Corp.
5.000%, 08/15/22		100		106,000
5.000%, 03/15/23		275		292,875
Rosetta Resources, Inc. 5.875%, 06/01/24		500		520,000
Samson Investment Co. 10.750%, 02/15/20 144A @		200		210,750
Seven Generations Energy Ltd. 8.250%, 05/15/20 144A @		300		330,000
Seventy Seven Energy, Inc. 6.500%, 07/15/22 144A @		400		410,000
SM Energy Co.
6.625%, 02/15/19		250		265,000
6.500%, 11/15/21		150		162,375
6.500%, 01/01/23		325		351,812
5.000%, 01/15/24		500		497,500
Swift Energy Co. 8.875%, 01/15/20		50		53,250
Tesoro Corp. 5.125%, 04/01/24		325		328,656
Western Refining, Inc. 6.250%, 04/01/21		325		339,625

65

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Oil & Gas — (continued)
WPX Energy, Inc. 6.000%, 01/15/22	$	650	$	693,875
YPF S.A. 8.750%, 04/04/24 144A @		100		104,490
				14,828,368
Oil & Gas Services — 0.6%
CGG S.A. 6.875%, 01/15/22 144A @		450		448,875
Exterran Partners LP
6.000%, 04/01/21		125		126,250
6.000%, 10/01/22 144A @		300		304,500
FTS International, Inc. 6.250%, 05/01/22 144A @		175		178,938
McDermott International, Inc. 8.000%, 05/01/21 144A @		175		179,812
				1,238,375
Packaging and Containers — 1.7%
AEP Industries, Inc. 8.250%, 04/15/19		150		158,250
ARD Finance S.A. PIK (1st coupon is PIK, then cash on PIK till 06/2016, then cash after) 11.125% 06/01/18 144A @		248		262,880
Ardagh Finance Holdings S.A. PIK 8.625%, 06/15/19 144A @		200		206,000
Ardagh Packaging Finance PLC
6.250%, 01/31/19		200		205,000
7.000%, 11/15/20 144A @		300		310,500
6.000%, 06/30/21		475		474,406
Beverage Packaging Holdings Luxembourg II SA
5.625%, 12/15/16 144A @		225		230,625
6.000%, 06/15/17 144A @		125		128,125
BWAY Holding Co. 10.000%, 06/15/18		150		158,062
Consolidated Container Co. LLC 10.125%, 07/15/20 144A @		375		376,875
Exopack Holding Corp. 10.000%, 06/01/18 144A @		200		215,000
Graphic Packaging International, Inc. 4.750%, 04/15/21		175		178,500
Rexam PLC 6.750%, 06/29/67•		175		253,107
Tekni-Plex, Inc. 9.750%, 06/01/19 144A @		130		145,275
				3,302,605
Pharmaceuticals — 0.9%
Capsugel Finance Co. SCA 9.875%, 08/01/19 144A @		200		295,112
Capsugel S.A. PIK (Cash coupon 7.000%, PIK 7.750%) 05/15/19 144A @		200		206,000

	Par (000)		Value†
Pharmaceuticals — (continued)
Delta Dutch Newco BV 7.500%, 02/01/22 144A @	$	150	$	155,250
Par Pharmaceutical Cos, Inc. 7.375%, 10/15/20		100		107,500
Valeant Pharmaceuticals International 6.375%, 10/15/20 144A @		500		531,250
Valeant Pharmaceuticals International Escrow Corp. 6.750%, 08/15/18 144A @		450		484,875
				1,779,987
Pipelines — 1.8%
El Paso LLC 8.250%, 02/15/16		100		109,500
6.500%, 09/15/20		25		27,688
MarkWest Energy Partners LP 4.500%, 07/15/23		850		867,000
Niska Gas Storage Canada Finance Corp. 6.500%, 04/01/19 144A @		500		480,000
NuStar Logistics LP 6.750%, 02/01/21		250		277,500
Penn Virginia Resource Partners LP 8.375%, 06/01/20		305		345,031
6.500%, 05/15/21		100		109,000
Regency Energy Partners LP 5.875%, 03/01/22		250		271,562
Rockies Express Pipeline LLC 6.850%, 07/15/18 144A @		25		27,000
5.625%, 04/15/20 144A @		75		77,250
Targa Resources Partners LP 5.250%, 05/01/23		50		52,250
4.250%, 11/15/23		875		869,531
				3,513,312
Real Estate — 1.5%
CBRE Services, Inc. 5.000%, 03/15/23		625		631,250
Dupont Fabros Technology LP 5.875%, 09/15/21		450		470,250
iStar Financial, Inc. 7.125%, 02/15/18		125		138,750
5.000%, 07/01/19		450		450,000
MPT Operating Partnership LP 6.875%, 05/01/21		225		245,250
6.375%, 02/15/22		125		134,062
Omega Healthcare Investors, Inc. 5.875%, 03/15/24		75		79,515
Realogy Group LLC 9.000%, 01/15/20 144A @		100		113,750
The Howard Hughes Corp. 6.875%, 10/01/21 144A @		625		668,750
				2,931,577
Retail — 3.0%
99 Cents Only Stores 11.000%, 12/15/19		225		249,188

66

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Retail — (continued)
AmeriGas Finance LLC 7.000%, 05/20/22	$	225	$	249,188
Building Materials Holding Corp. 9.000%, 09/15/18 144A @		350		377,125
Ferrellgas LP 6.500%, 05/01/21		275		287,031
6.750%, 01/15/22 144A @		300		313,500
Group 1 Automotive, Inc. 5.000%, 06/01/22 144A @		100		100,000
Guitar Center, Inc. 6.500%, 04/15/19 144A @		375		371,250
New Look Bondco I PLC 8.375%, 05/14/18 144A @		725		776,692
PC Nextco Holdings LLC PIK (Cash coupon 8.750%, PIK 9.500%) 08/15/19 144A @		350		357,437
Penske Automotive Group, Inc. 5.750%, 10/01/22		200		210,500
PF Chang’s China Bistro, Inc. 10.250%, 06/30/20 144A @		800		816,000
Rite Aid Corp. 6.750%, 06/15/21		475		514,187
7.700%, 02/15/27		350		391,125
Sears Holdings Corp. 6.625%, 10/15/18		200		184,250
Sonic Automotive, Inc. 5.000%, 05/15/23		175		171,938
Sonic Automotive, Inc. PIK 7.000%, 07/15/22		150		164,625
The Men’s Wearhouse, Inc. 7.000%, 07/01/22 144A @		175		181,125
The Pantry, Inc. 8.375%, 08/01/20		175		189,000
				5,904,161
Semiconductors — 0.4%
Freescale Semiconductor, Inc. 6.000%, 01/15/22 144A @		375		399,375
NXP BV 5.750%, 02/15/21 144A @		200		210,250
5.750%, 03/15/23 144A @		250		262,813
				872,438
Software — 3.1%
ACI Worldwide, Inc. 6.375%, 08/15/20 144A @		125		131,563
Activision Blizzard, Inc. 5.625%, 09/15/21 144A @		700		754,250
6.125%, 09/15/23 144A @		175		192,500
BCP Singapore VI Cayman Financing Co. Ltd. 8.000%, 04/15/21 144A @		200		204,500
BMC Software Finance, Inc. 8.125%, 07/15/21 144A @		350		360,063
Eagle Midco, Inc. PIK (Cash coupon 9.000%, PIK 9.750%) 06/15/18 144A @		425		438,812

	Par (000)		Value†
Software — (continued)
Epicor Software Corp. 8.625%, 05/01/19	$	225	$	242,156
First Data Corp. 6.750%, 11/01/20 144A @		525		568,312
12.625%, 01/15/21		1,425		1,754,531
First Data Holdings, Inc. PIK 14.500%, 09/24/19 144A @		367		407,579
Infor Software Parent LLC PIK 7.125%, 05/01/21 144A @		225		230,063
Infor U.S., Inc. 9.375%, 04/01/19		300		334,125
InterXion Holding NV 6.000%, 07/15/20 144A @		100		145,830
MedAssets, Inc. 8.000%, 11/15/18		325		343,688
				6,107,972
Telecommunications — 10.8%
Alcatel-Lucent USA, Inc. 8.875%, 01/01/20 144A @		225		254,817
6.750%, 11/15/20 144A @		575		612,375
Altice Finco S.A. 9.875%, 12/15/20 144A @		400		461,000
9.000%, 06/15/23 144A @		325		515,781
8.125%, 01/15/24 144A @		200		220,500
Altice S.A. 7.750%, 05/15/22 144A @		400		427,000
B Communications Ltd. 7.375%, 02/15/21 144A @		325		349,375
CenturyLink, Inc. 5.625%, 04/01/20		725		764,875
Crown Castle International Corp. 5.250%, 01/15/23		425		443,062
Digicel Group Ltd. 8.250%, 09/30/20 144A @		400		436,000
7.125%, 04/01/22 144A @		250		260,625
Digicel Ltd. 6.000%, 04/15/21 144A @		200		206,500
EarthLink Holdings Corp.		75		75,000
8.875%, 05/15/19
7.375%, 06/01/20		175		186,594
Goodman Networks, Inc. 12.125%, 07/01/18		275		301,813
12.375%, 07/01/18 144A @		100		109,750
Hughes Satellite Systems Corp. 6.500%, 06/15/19		350		390,250
7.625%, 06/15/21		325		372,125
Intelsat Jackson Holdings S.A. 6.625%, 12/15/22		525		547,969
Intelsat Jackson Holdings SA 5.500%, 08/01/23		700		696,500
Intelsat Luxembourg S.A. 7.750%, 06/01/21		675		714,656
8.125%, 06/01/23		275		297,344

67

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Telecommunications — (continued)
Level 3 Communications, Inc. 11.875%, 02/01/19	$	225	$	249,750
8.875%, 06/01/19		100		109,375
Level 3 Financing, Inc. 7.000%, 06/01/20		125		136,563
Matterhorn Financing & CY SCA PIK 9.000%, 04/15/19 144A @		350		493,599
Matterhorn Midco & CY SCA 7.750%, 02/15/20 144A @		325		475,062
Millicom International Cellular SA 6.625%, 10/15/21 144A @		200		215,000
Mobile Challenger Intermediate Group SA PIK 8.750%, 03/15/19 144A @		150		174,222
NII Capital Corp. 10.000%, 08/15/16		350		108,500
7.625%, 04/01/21		300		86,250
NII International Telecom SCA 11.375%, 08/15/19 144A @		175		154,875
Play Finance 1 S.A. 6.500%, 08/01/19 144A @		100		146,857
Play Finance 2 S.A. 5.250%, 02/01/19 144A @		100		143,640
Sable International Finance Ltd. 8.750%, 02/01/20 144A @		200		225,000
Sprint Communications, Inc. 11.500%, 11/15/21		500		675,000
Sprint Corp. 7.125%, 06/15/24 144A @		2,725		2,888,514
Syniverse Holdings, Inc. 9.125%, 01/15/19		300		321,375
T-Mobile USA, Inc. 6.250%, 04/01/21		450		478,125
6.633%, 04/28/21		450		487,125
6.731%, 04/28/22		550		593,312
Telecom Italia SpA 6.375%, 06/24/19		350		651,865
UPC Holding BV 8.375%, 08/15/20 144A @		125		187,423
6.750%, 03/15/23 144A @		375		468,750
6.750%, 03/15/23 144A @		200		302,829
UPCB Finance V Ltd. 7.250%, 11/15/21 144A @		150		165,000
UPCB Finance VI Ltd. 6.875%, 01/15/22 144A @		225		245,813
Vimpel Communications Via VIP Finance Ireland Ltd. OJSC 7.748%, 02/02/21 144A @		200		218,500
VimpelCom Holdings BV 5.200%, 02/13/19 144A @		200		200,300
7.504%, 03/01/22 144A @		450		485,437
Wind Acquisition Finance S.A. 6.500%, 04/30/20 144A @		275		298,031
4.750%, 07/15/20		400		403,000
7.375%, 04/23/21		775		827,312
				21,260,315

	Par (000)		Value†
Textiles — 0.1%
Springs Industries, Inc. 6.250%, 06/01/21	$	150	$	153,000
Transportation — 0.2%
gategroup Finance (Luxembourg) S.A. 6.750%, 03/01/19 144A @		100		145,830
Watco Cos. LLC 6.375%, 04/01/23 144A @		175		178,500
				324,330
TOTAL CORPORATE BONDS (Cost $165,085,719)				174,546,464
LOAN AGREEMENTS — 4.4%‡
Auto Manufacturers — 0.1%
Navistar, Inc. 5.750%, 08/17/17•		125		127,344
Chemicals — 0.1%
Univar, Inc. 5.000%, 06/30/17•		296		297,281
Commercial Services — 0.2%
Weight Watchers International, Inc. 4.000%, 04/02/20•		423		336,513
Computers — 0.1%
Dell, Inc. 4.500%, 04/29/20		148		148,990
Distribution & Wholesale — 0.1%
Husky Injection Molding System 0.000%, 06/10/21		150		150,563
Diversified Financial Services — 0.2%
Nuveen Investments, Inc. 6.500%, 02/28/19•		200		201,678
Vantiv LLC 0.000%, 06/13/21		275		276,375
				478,053
Electric — 0.3%
Equipower Resources Holding LLC 4.250%, 12/31/19•		693		696,904
Entertainment — 0.2%
Peninsula Gaming LLC 4.250%, 11/20/17•		364		364,451
Environmental Control — 0.1%
Tervita Corp. 6.250%, 05/15/18		250		250,730
Healthcare Services — 0.2%
Community Health Systems, Inc. 4.250%, 01/27/21•		249		250,460
Ortho-Clinical Diagnostics 0.000%, 04/24/21		225		226,717
				477,177

68

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
LOAN AGREEMENTS — (continued)
Holding Companies — 0.1%
CeramTec GmbH 4.250%, 08/30/20	$	99	$	99,202
Insurance — 0.5%
Asurion LLC 5.000%, 05/24/19•		374		376,140
8.500%, 03/03/21		550		570,075
				946,215
Lodging — 0.3%
Citycenter Holdings LLC 5.000%, 10/16/20•		659		663,192
Machinery — Diversified — 0.1%
Gardner Denver, Inc. 4.250%, 07/30/20•		174		173,545
Media — 0.5%
McGraw-Hill Global Education Holdings LLC 5.750%, 03/22/19•		169		171,755
SuperMedia, Inc. PIK 11.600%, 12/30/16•		426		359,247
Univision Communications, Inc. 4.000%, 03/01/20•		374		373,552
				904,554
Oil & Gas — 0.4%
Foresight Energy LLC 5.500%, 08/21/20 144A @•		145		145,928
Philadelphia Energy Solutions Refining and Marketing LLC 6.250%, 04/04/18•	$	423	$	393,379
TGGT Holdings 6.500%, 11/15/18		244		245,274
				784,581
Oil & Gas Services — 0.1%
Murray Energy Corp. 5.250%, 12/05/19		175		176,526
Retail — 0.7%
JC Penney Corp.• 6.000%, 05/22/18		596		602,021
6.000%, 05/22/18		273		276,348
PF Chang’s China Bistro, Inc. 4.250%, 06/22/19•		480		470,701
				1,349,070
Telecommunications — 0.1%
Alcatel-Lucent USA, Inc. 4.500%, 01/30/19•		197		197,032
TOTAL LOAN AGREEMENTS‡ (Cost $8,615,637)				8,621,923

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 4.7%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		496,141		496,141
T. Rowe Price Reserve Investment Fund		8,777,310		8,777,310
TOTAL SHORT-TERM INVESTMENTS (Cost $9,273,451)				9,273,451
TOTAL INVESTMENTS — 100.0% (Cost $186,174,848)			$	196,244,528

‡ Loan Agreements in which the Fund invests generally pay interest at rates which are periodically predetermined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the Prime Rate offered by one or more major U.S. banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (“LIBOR”) or (iii) the Certificate of Deposit rate. Rate shown represents the actual rate at June 30, 2014. Loan Agreements, while exempt from registration under the Security Act of 1933, as amended (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Floating rate Loan Agreements often require repayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.

* Non-income producing security.

@ Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “accredited investors”. Unless otherwise indicated, the security is considered liquid.

^ Illiquid security. The total market value of illiquid securities at June 30, 2014 is $270,306.

• Variable Rate Security.

~ Fair valued security. The total market value of fair valued securities at June 30, 2014 is $27,313.

CONV — Convertible Security.

LLC — Limited Liability Company.

LP — Limited Partnership.

OJSC — Open Joint Stock Company

PIK — Payment in Kind Security.

PLC — Public Limited Company.

STEP — Step Coupon Bond.

69

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

High Yield Bond Fund

Country Weightings as of 06/30/2014††
United States	76%
Luxembourg	7
Canada	3
Netherlands	3
United Kingdom	3
France	1
Germany	1
Other	6
Total	100%

†† % of total investments as of June 30, 2014

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	1,981,382	$	1,954,069	$	—	$	27,313
REAL ESTATE INVESTMENT TRUSTS		252,147		252,147		—		—
PREFERRED STOCKS
Banks		501,265		—		501,265		—
Diversified Financial Services		241,155		241,155		—		—
Oil & Gas		151,454		151,454		—		—
Packaging and Containers		—		—		—		—
Telecommunications		249,704		249,704		—		—
ASSET BACKED SECURITIES		425,583		—		425,583		—
CORPORATE BONDS		174,546,464		—		174,546,464		—
LOAN AGREEMENTS		8,621,923		—		8,621,923		—
SHORT-TERM INVESTMENTS		9,273,451		9,273,451		—		—
TOTAL INVESTMENTS	$	196,244,528	$	12,121,980	$	184,095,235	$	27,313

Following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Investments in Securities (Market Value)
Balance as of 12/31/2013	$	24,557
Change in Appreciation/(Depreciation)		2,756
Balance as of 6/30/2014	$	27,313

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

70

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Flexibly Managed Fund

	Par (000)		Value†
AGENCY OBLIGATION — 0.2%
Banks — 0.2%
KFW 0.500%, 04/19/16 (Cost $6,645,726)	$	6,658	$	6,662,196
ASSET BACKED SECURITIES — 0.6%
Ally Master Owner Trust 0.851%, 06/15/17•		8,755		8,793,224
Continental Airlines 2009-1 Pass- Through Trust 9.000%, 07/08/16		775		875,724
Continental Airlines 2009-2 Class A, Pass Through Trust 7.250%, 11/10/19		657		768,181
Continental Airlines 2012-1 Class A, Pass Through Trust 4.150%, 04/11/24		2,101		2,195,782
Continental Airlines 2012-1 Class B, Pass Through Trust 6.250%, 04/11/20		418		455,479
Ford Credit Auto Owner Trust 2012 0.580%, 12/15/16		1,540		1,541,211
Honda Auto Receivables Owner Trust 0.560%, 05/15/16		1,490		1,491,776
TOTAL ASSET BACKED SECURITIES (Cost $15,764,302)				16,121,377
	Number of Shares		Value†
COMMON STOCKS — 61.2%
Aerospace & Defense — 3.6%
The Boeing Co.		202,900		25,814,967
United Technologies Corp.		673,600		77,767,120
				103,582,087
Agriculture — 1.5%
Philip Morris International, Inc.		526,100		44,355,491
Auto Parts & Equipment — 2.4%
Delphi Automotive PLC		320,600		22,038,044
Johnson Controls, Inc.		478,400		23,886,512
TRW Automotive Holdings Corp.*		257,200		23,024,544
				68,949,100
Banks — 4.1%
Bank of America Corp.		346,500		5,325,705
JPMorgan Chase & Co.		824,700		47,519,214
State Street Corp.		773,700		52,039,062
The PNC Financial Services Group, Inc.		175,800		15,654,990
				120,538,971
Beverages — 1.2%
PepsiCo, Inc.		402,800		35,986,152
Chemicals — 0.4%
Cytec Industries, Inc.		111,600		11,764,872
Commercial Services — 1.3%
Iron Mountain, Inc.		384,700		13,637,615
Tyco International Ltd.		562,300		25,640,880
				39,278,495

	Number of Shares		Value†
Computers — 0.7%
Apple, Inc.		121,800	$	11,318,874
Seagate Technology PLC		91,700		5,210,394
Western Digital Corp.		46,200		4,264,260
				20,793,528
Cosmetics & Personal Care — 0.7%
Avon Products, Inc.		215,300		3,145,533
The Procter & Gamble Co.		214,582		16,863,999
				20,009,532
Diversified Financial Services — 3.7%
Invesco Ltd.		844,208		31,868,852
TD Ameritrade Holding Corp.		1,642,100		51,479,835
Visa, Inc., Class A		116,000		24,442,360
				107,791,047
Electric — 4.3%
Entergy Corp.		62,600		5,138,834
PG&E Corp.		1,223,500		58,752,470
Xcel Energy, Inc.		1,853,200		59,728,636
				123,619,940
Electronics — 2.7%
Agilent Technologies, Inc.		172,100		9,885,424
TE Connectivity Ltd.		114,225		7,063,674
Thermo Fisher Scientific, Inc.		521,900		61,584,200
				78,533,298
Food — 1.1%
General Mills, Inc.		123,728		6,500,669
Mondelez International, Inc., Class A		715,200		26,898,672
				33,399,341
Healthcare Products — 0.5%
DENTSPLY International, Inc.		25,000		1,183,750
Henry Schein, Inc.*		104,678		12,422,138
				13,605,888
Healthcare Services — 3.3%
DaVita HealthCare Partners, Inc.*		297,400		21,507,968
Humana, Inc.		37,200		4,751,184
UnitedHealth Group, Inc.		860,000		70,305,000
				96,564,152
Insurance — 3.3%
Marsh & McLennan Cos., Inc.		1,371,600		71,076,312
XL Group PLC		718,735		23,524,197
				94,600,509
Internet — 1.2%
Google, Inc., Class A*		29,100		17,013,897
Google, Inc., Class C*		29,500		16,970,760
				33,984,657
Machinery — Diversified — 0.6%
Roper Industries, Inc.		117,000		17,083,170

71

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Schedule of Investments — June 30, 2014 (Unaudited)

Flexibly Managed Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Media — 1.9%
Liberty Global PLC, Class A*		134,000	$	5,925,480
Liberty Global PLC, Series C*		335,300		14,186,543
Twenty-First Century Fox, Inc. Class B		741,500		25,381,545
Viacom, Inc., Class B		115,900		10,052,007
				55,545,575
Miscellaneous Manufacturing — 3.6%
Danaher Corp.		1,313,078		103,378,631
Oil & Gas — 3.2%
Anadarko Petroleum Corp.		60,100		6,579,147
Apache Corp.		251,000		25,255,620
Canadian Natural Resources Ltd.		148,100		6,799,271
Chesapeake Energy Corp.		380,700		11,832,156
Concho Resources, Inc.*		97,300		14,059,850
Pioneer Natural Resources Co.		57,200		13,145,132
Range Resources Corp.		163,147		14,185,632
				91,856,808
Pharmaceuticals — 5.0%
Abbott Laboratories		268,300		10,973,470
Allergan, Inc.		313,100		52,982,782
Perrigo Co. PLC		187,800		27,373,728
Pfizer, Inc.		787,343		23,368,340
Zoetis, Inc.		923,186		29,791,212
				144,489,532
Retail — 4.7%
AutoZone, Inc.*		117,200		62,847,328
CVS Caremark Corp.		209,300		15,774,941
Dollar Tree, Inc.*		323,900		17,639,594
Lowe’s Cos., Inc.		473,800		22,737,662
O’Reilly Automotive, Inc.*		125,200		18,855,120
				137,854,645
Semiconductors — 1.8%
NXP Semiconductors N.V.*		243,300		16,101,594
Texas Instruments, Inc.		763,200		36,473,328
				52,574,922
Software — 2.4%
Fidelity National Information Services, Inc.		113,200		6,196,568
Fiserv, Inc.*		1,066,400		64,325,248
				70,521,816
Telecommunications — 2.0%
Crown Castle International Corp.		488,300		36,261,158
SBA Communications Corp., Class A*		203,600		20,828,280
				57,089,438
TOTAL COMMON STOCKS (Cost $1,283,742,491)				1,777,751,597

	Par (000)		Value†
REAL ESTATE INVESTMENT TRUSTS — 1.5%
Diversified — 1.5%
American Tower Corp. (Cost $36,536,258)	$	497,197	$	44,737,786
	Number of Shares		Value†
PREFERRED STOCKS — 0.4%
Banks — 0.2%
U.S. Bancorp Series F*		71,000		2,006,460
U.S. Bancorp Series G*		90,000		2,466,900
				4,473,360
Electric — 0.2%
SCE Trust I*		83,775		1,985,467
SCE Trust II*		14,730		321,114
SCE Trust III*		161,355		4,259,772
				6,566,353
Oil & Gas — 0.0%
Chesapeake Energy Corp.*		420		40,950
TOTAL PREFERRED STOCKS (Cost $10,495,453)				11,080,663
	Par (000)		Value†
CORPORATE BONDS — 17.8%
Advertising — 0.1%
Lamar Media Corp. 5.875%, 02/01/22	$	900		964,125
5.000%, 05/01/23		850		855,313
				1,819,438
Aerospace & Defense — 0.2%
United Technologies Corp. 0.727%, 06/01/15•		4,725		4,745,275
Airlines — 0.4%
Continental Airlines, Inc. 6.750%, 09/15/15 144A @		890		897,787
Delta Air Lines 2009-1, Class A Pass Through Trust 7.750%, 12/17/19		546		641,293
Delta Air Lines 2011-1, Class A Pass Through Trust 5.300%, 04/15/19		516		570,257
Hawaiian Airlines 2013-1 Class A, Pass Through Certificates 3.900%, 01/15/26		1,815		1,805,925
United Airlines, Inc. 4.500%, 01/15/15		1,879		4,120,882
US Airways 2010-1 Class A, Pass Through Trust 6.250%, 04/22/23		1,992		2,255,510
US Airways 2010-1 Class B, Pass Through Trust 8.500%, 04/22/17 144A @^		239		265,631
US Airways 2012-2 Class A, Pass Through Trust 4.625%, 06/03/25		282		298,913

72

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Airlines — (continued)
US Airways 2012-2 Class B, Pass Through Trust 6.750%, 06/03/21	$	523	$	572,544
US Airways 2013-1 Class A, Pass Through Trust 3.950%, 11/15/25		5		5,113
US Airways 2013-1 Class B, Pass Through Trust 5.375%, 11/15/21		5		5,244
				11,439,099
Auto Manufacturers — 0.1%
Daimler Finance North America LLC 1.085%, 08/01/18 144A @•		1,525		1,540,923
Auto Parts & Equipment — 0.3%
Delphi Corp. 6.125%, 05/15/21		3,125		3,492,500
5.000%, 02/15/23		3,450		3,708,750
Schaeffler Finance BV 7.750%, 02/15/17 144A @		1,250		1,409,375
TRW Automotive, Inc. 4.500%, 03/01/21 144A @		1,000		1,055,000
				9,665,625
Banks — 0.0%
Regions Bank 7.500%, 05/15/18		90		107,119
Synovus Financial Corp. 5.125%, 06/15/17		105		109,463
				216,582
Beverages — 0.3%
Heineken NV 0.800%, 10/01/15 144A @		1,515		1,519,804
SABMiller Holdings, Inc. 0.916%, 08/01/18 144A @•		3,455		3,474,493
2.200%, 08/01/18 144A @		3,000		3,031,656
				8,025,953
Coal — 0.1%
CONSOL Energy, Inc 5.875%, 04/15/22 144A @		3,075		3,221,063
Cosmetics & Personal Care — 0.3%
The Procter & Gamble Co. 3.100%, 08/15/23		9,700		9,779,753
Diversified Financial Services — 3.0%
American Honda Finance Corp. 0.324%, 11/13/14 144A @•		1,350		1,350,541
Caterpillar Financial Services Corp. 0.700%, 11/06/15		1,585		1,590,422
1.250%, 11/06/17		2,345		2,334,947
E*TRADE Financial Corp. 6.750%, 06/01/16		7,250		7,866,250
6.000%, 11/15/17		7,300		7,592,000
6.375%, 11/15/19		5,750		6,224,375

	Par (000)		Value†
Diversified Financial Services — (continued)
Ford Motor Credit Co. LLC 3.875%, 01/15/15	$	4,530	$	4,611,155
2.750%, 05/15/15		2,300		2,344,158
2.500%, 01/15/16		2,190		2,245,556
1.474%, 05/09/16•		3,755		3,810,345
4.250%, 02/03/17		1,340		1,439,074
6.625%, 08/15/17		1,675		1,928,116
0.800%, 12/06/17•		6,325		6,329,162
1.724%, 12/06/17		2,150		2,150,875
5.000%, 05/15/18		1,800		2,002,412
2.375%, 03/12/19		4,275		4,295,751
International Lease Finance Corp. 2.181%, 06/15/16•		2,905		2,923,156
John Deere Capital Corp. 0.330%, 10/08/14•		3,845		3,846,015
0.297%, 01/12/15•		4,475		4,477,264
0.700%, 09/04/15		1,800		1,805,899
Legg Mason, Inc. 5.500%, 05/21/19		4,160		4,807,878
PACCAR Financial Corp. 0.361%, 05/05/15•		1,085		1,086,180
0.495%, 02/08/16•		480		481,402
0.750%, 05/16/16		900		902,267
0.420%, 06/06/17•		1,635		1,634,989
Toyota Motor Credit Corp. 0.308%, 08/22/14•		2,100		2,100,475
0.396%, 01/23/15•		2,305		2,307,515
0.380%, 03/10/15•		2,250		2,252,513
				86,740,692
Electric — 0.4%
Calpine Corp. 7.500%, 02/15/21 144A @		1,035		1,122,975
CMS Energy Corp. 6.550%, 07/17/17		895		1,022,418
8.750%, 06/15/19		415		535,010
Duke Energy Corp. 0.611%, 04/03/17•		1,510		1,514,533
ITC Holdings Corp. 3.651%, 06/15/24		865		862,040
Northern States Power Co. 3.300%, 06/15/24		350		351,003
NSTAR Electric Co. 0.466%, 05/17/16•		1,950		1,947,545
Otter Tail Corp. 9.000%, 12/15/16^		890		1,035,738
Pennsylvania Electric Co. 4.150%, 04/15/25 144A @		1,140		1,142,383
Xcel Energy, Inc. 0.750%, 05/09/16		2,160		2,162,203
				11,695,848

73

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Entertainment — 0.1%
Cedar Fair LP 9.125%, 08/01/18	$	2,550	$	2,682,600
Cedar Fair LP 5.250%, 03/15/21		1,425		1,467,750
				4,150,350
Food — 0.2%
B&G Foods, Inc. 4.625%, 06/01/21		1,525		1,528,812
Campbell Soup Co. 0.525%, 08/01/14•		2,630		2,630,694
General Mills, Inc.
0.527%, 01/29/16•		1,975		1,980,052
0.875%, 01/29/16		820		823,601
				6,963,159
Healthcare Products — 0.1%
Baxter International, Inc. 0.401%, 12/11/14•		2,715		2,716,613
Healthcare Services — 0.2%
DaVita HealthCare Partners, Inc. 5.750%, 08/15/22		400		427,500
5.125%, 07/15/24		5,250		5,282,812
Fresenius Medical Care U.S. Finance II, Inc. 5.625%, 07/31/19 144A @		750		817,500
5.875%, 01/31/22 144A @		425		469,625
				6,997,437
Machinery — Diversified — 0.3%
CNH Capital LLC 3.875%, 11/01/15		1,400		1,428,000
6.250%, 11/01/16		2,650		2,875,250
3.625%, 04/15/18		3,150		3,216,938
Xylem, Inc. 3.550%, 09/20/16		1,300		1,369,560
4.875%, 10/01/21		415		451,325
				9,341,073
Media — 1.2%
CCO Holdings LLC 7.250%, 10/30/17		850		896,750
Unitymedia Hessen GmbH & Co. KG 7.500%, 03/15/19 144A @		6,550		6,992,125
7.500%, 03/15/19 144A @		860		1,260,030
5.500%, 01/15/23 144A @		3,400		3,519,000
Univision Communications, Inc. 6.875%, 05/15/19 144A @		7,200		7,686,000
7.875%, 11/01/20 144A @		3,100		3,410,000
6.750%, 09/15/22 144A @		6,719		7,432,894
5.125%, 05/15/23 144A @		2,050		2,170,437
				33,367,236

	Par (000)		Value†
Miscellaneous Manufacturing — 0.0%
Actuant Corp. 5.625%, 06/15/22	$	125	$	131,250
Oil & Gas — 3.2%
Antero Resources Corp. 5.125%, 12/01/22 144A @		2,300		2,363,250
Antero Resources Finance Corp. 6.000%, 12/01/20		3,950		4,236,375
5.375%, 11/01/21		4,875		5,057,812
Athlon Holdings LP 6.000%, 05/01/22 144A @		1,100		1,138,500
Chesapeake Energy Corp. 3.250%, 03/15/16		1,025		1,031,406
Concho Resources, Inc. 7.000%, 01/15/21		2,875		3,155,313
6.500%, 01/15/22		4,200		4,630,500
5.500%, 10/01/22		2,425		2,609,906
5.500%, 04/01/23		5,600		6,020,000
EQT Corp. 6.500%, 04/01/18		1,620		1,840,409
8.125%, 06/01/19		1,754		2,194,617
4.875%, 11/15/21		8,005		8,748,769
Laredo Petroleum, Inc. 9.500%, 02/15/19		5,500		6,036,250
5.625%, 01/15/22		2,225		2,300,094
7.375%, 05/01/22		500		558,750
Range Resources Corp. 6.750%, 08/01/20		2,725		2,929,375
5.750%, 06/01/21		7,350		7,938,000
5.000%, 08/15/22		11,400		12,084,000
5.000%, 03/15/23		13,500		14,377,500
SM Energy Co. 6.500%, 11/15/21		3,425		3,707,562
6.500%, 01/01/23		1,200		1,299,000
				94,257,388
Packaging and Containers — 0.1%
Rexam PLC 6.750%, 06/29/67•		1,700		2,458,750
Pharmaceuticals — 0.1%
Zoetis, Inc. 1.150%, 02/01/16		795		799,994
1.875%, 02/01/18		525		526,181
				1,326,175
Pipelines — 1.8%
Energy Transfer Partners LP 4.150%, 10/01/20		1,925		2,035,156
4.900%, 02/01/24		2,465		2,647,055
MarkWest Energy Partners LP 6.750%, 11/01/20		1,775		1,925,875
6.500%, 08/15/21		4,675		5,049,000
6.250%, 06/15/22		7,425		8,111,812
5.500%, 02/15/23		11,235		11,965,275
4.500%, 07/15/23		12,375		12,622,500

74

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Pipelines — (continued)
ONEOK Partners LP 2.000%, 10/01/17	$	830	$	841,329
Spectra Energy Partners LP 4.750%, 03/15/24		2,555		2,768,118
Targa Resources Partners LP 5.250%, 05/01/23		1,475		1,541,375
4.250%, 11/15/23		3,325		3,304,219
				52,811,714
Real Estate — 0.1%
CBRE Services, Inc. 6.625%, 10/15/20		1,675		1,777,594
5.000%, 03/15/23		900		909,000
				2,686,594
Real Estate Investment Trusts — 0.2%
American Tower Corp. 4.625%, 04/01/15		200		205,998
3.500%, 01/31/23		925		907,092
5.000%, 02/15/24		1,535		1,667,206
Host Hotels & Resorts LP 5.875%, 06/15/19		1,800		1,933,936
				4,714,232
Retail — 1.0%
AmeriGas Finance LLC 6.250%, 08/20/19		600		640,500
6.750%, 05/20/20		675		732,375
7.000%, 05/20/22		1,525		1,688,938
Group 1 Automotive, Inc. 5.000%, 06/01/22 144A @		250		250,000
L Brands, Inc. 6.900%, 07/15/17		1,400		1,589,000
8.500%, 06/15/19		900		1,104,750
7.000%, 05/01/20		900		1,033,875
6.625%, 04/01/21		1,925		2,187,281
5.625%, 02/15/22		1,625		1,759,062
5.625%, 10/15/23		5,775		6,273,094
Rite Aid Corp. 8.000%, 08/15/20		6,225		6,847,500
Suburban Propane Partners LP 7.500%, 10/01/18		1,675		1,756,020
7.375%, 03/15/20		2,350		2,502,750
7.375%, 08/01/21		750		815,625
				29,180,770
Semiconductors — 0.6%
NXP BV 3.750%, 06/01/18 144A @		2,800		2,807,000
5.750%, 02/15/21 144A @		3,625		3,810,781
5.750%, 03/15/23 144A @		7,300		7,674,125
Xilinx, Inc. 3.000%, 03/15/21		2,600		2,624,198
				16,916,104

	Par (000)		Value†
Telecommunications — 3.1%
Crown Castle International Corp. 4.875%, 04/15/22	$	4,875	$	5,039,531
5.250%, 01/15/23		3,865		4,029,262
Intelsat Jackson Holdings SA 7.250%, 04/01/19		3,425		3,643,344
8.500%, 11/01/19		3,000		3,187,500
7.250%, 10/15/20		14,155		15,252,012
7.500%, 04/01/21		1,350		1,478,250
5.500%, 08/01/23		5,815		5,785,925
Matterhorn Mobile SA 5.393%, 05/15/19 144A @•		250		285,084
6.750%, 05/15/19 144A @		930		1,119,671
SBA Telecommunications, Inc. 5.625%, 10/01/19		950		1,005,813
8.250%, 08/15/19		133		139,384
5.750%, 07/15/20		875		927,500
Sprint Capital Corp. 6.900%, 05/01/19		300		330,750
Sprint Communications, Inc. 9.000%, 11/15/18 144A @		6,790		8,232,875
11.500%, 11/15/21		450		607,500
Telesat Canada 6.000%, 05/15/17 144A @		2,595		2,676,094
UPCB Finance III Ltd. 6.625%, 07/01/20 144A @		12,045		12,827,925
UPCB Finance V Ltd. 7.250%, 11/15/21 144A @		7,605		8,365,500
UPCB Finance VI Ltd. 6.875%, 01/15/22 144A @		7,750		8,466,875
Verizon Communications, Inc. 0.430%, 03/06/15 144A @•		4,450		4,451,860
0.631%, 06/09/17•		3,420		3,423,950
				91,276,605
Transportation — 0.3%
Burlington Northern Santa Fe LLC 3.850%, 09/01/23		7,075		7,369,936
3.750%, 04/01/24		635		655,327
				8,025,263
TOTAL CORPORATE BONDS (Cost $498,257,573)				516,210,964
LOAN AGREEMENTS — 5.6%‡
Diversified Financial Services — 0.2%
Hilton Worldwide Finance LLC 3.500%, 10/25/20•		5,112		5,101,210
Terra-Gen Finance Co., LLC 6.500%, 06/22/17•^		2,247		2,241,626
				7,342,836
Electric — 0.1%
Texas Competitive Electric Holdings Co. LLC 0.000%, 05/05/16		1,800		1,807,920

75

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Flexibly Managed Fund

	Par (000)		Value†
LOAN AGREEMENTS — (continued)
Entertainment — 0.1%
Kasima LLC 3.250%, 05/17/21•	$	775	$	771,613
Peninsula Gaming LLC 4.250%, 11/20/17•		3,457		3,462,288
				4,233,901
Food — 1.8%
H.J. Heinz Co. 3.500%, 06/05/20•		42,694		42,994,314
Pinnacle Foods Finance LLC 3.250%, 04/29/20•		3,821		3,798,427
3.250%, 04/29/20•		4,848		4,819,677
				51,612,418
Healthcare Services — 0.2%
Davita Healthcare Partners, Inc. 4.000%, 06/19/21		3,550		3,564,519
HCA, Inc. 2.900%, 03/31/17•		1,141		1,143,521
				4,708,040
Holding Companies — 0.9%
Intelsat Jackson Holdings 3.750%, 06/30/19		26,346		26,368,213
Media — 0.3%
CCO Holdings LLC 2.650%, 09/06/14•		500		498,750
Cequel Communications LLC 3.500%, 02/14/19•		4,415		4,413,689
Charter Communications Operating LLC 3.000%, 07/01/20•		2,104		2,070,153
3.000%, 01/03/21•		1,468		1,445,016
				8,427,608
Retail — 0.2%
Rite Aid Corp. 3.500%, 02/21/20		748		748,596
Wendy’s International, Inc. 3.250%, 05/15/19•		5,544		5,548,325
				6,296,921
Telecommunications — 1.8%
Crown Castle Operating Co. 3.000%, 01/31/21•		25,234		25,221,879
Telesat Canada 3.500%, 03/28/17•		743		694,104
3.500%, 03/28/19•,^		3,703		3,460,299
3.500%, 03/28/19•		5,460		5,444,813
UPC Financing Partnership 3.250%, 06/30/21•		16,800		16,667,784
				51,488,879
TOTAL LOAN AGREEMENTS (Cost $162,529,477)				162,286,736

	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — 5.1%
U.S. Treasury Note 2.500%, 08/15/23	$	51,050	$	51,353,135
2.750%, 11/15/23		95,025		97,393,213
TOTAL U.S. TREASURY OBLIGATIONS (Cost $142,551,707)				148,746,348

	Number of Shares			Value†
SHORT-TERM INVESTMENTS — 7.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		9,928,864			9,928,864
T. Rowe Price Reserve Investment Fund		219,113,606			219,113,606
TOTAL SHORT-TERM INVESTMENTS (Cost $229,042,470)					229,042,470
TOTAL INVESTMENTS — 100.3% (Cost $2,385,565,458)				$	2,912,640,137
	Number of Contracts			Value†
WRITTEN OPTIONS
Call Options
Apache, $100.00, 01/17/15		(280	)		(189,280	)
Apache, $105.00, 01/17/15		(140	)		(64,260	)
Anadarko, $110.00, 01/17/15		(140	)		(120,400	)
Anadarko, $115.00, 01/17/15		(84	)		(54,852	)
Apache, $90.00, 01/17/15		(163	)		(211,900	)
Apache, $92.50, 1/17/15		(326	)		(369,684	)
Apache, $95.00, 01/17/15		(440	)		(416,680	)
Anadarko, $97.50, 01/17/15		(140	)		(112,000	)
Apple, $92.86, 01/17/15		(1,218	)		(816,060	)
Autozone, $570.00, 01/17/15		(6	)		(8,760	)
Autozone, $570.00, 09/20/14		(6	)		(2,520	)
Autozone, $600.00, 01/17/15		(6	)		(4,380	)
Autozone, $600.00, 09/20/14		(6	)		(540	)
Boeing, $135.00, 01/17/15		(203	)		(11,571	)
Boeing, $135.00, 01/17/15		(107	)		(39,055	)
Boeing, $140.00, 01/17/15		(107	)		(25,573	)
Boeing, $140.00, 08/16/14		(107	)		(8,239	)
Boeing, $145.00, 01/17/15		(204	)		(31,008	)
Boeing, $155.00, 01/17/15		(203	)		(18,270	)
Boeing, $77.00, 08/16/14		(107	)		(3,210	)
Crown Castle, $80.00, 01/17/15		(1,295	)		(194,250	)
CVS, $77.50, 08/16/14		(95	)		(8,265	)
CVS, $80.00, 01/18/15		(95	)		(26,600	)
CVS, $80.00, 01/18/15		(95	)		(16,340	)
CVS, $80.00, 08/16/14		(95	)		(2,850	)
Danaher Corp., $80.00, 01/17/15		(91	)		(31,850	)
Danaher Corp., $80.00, 09/20/14		(91	)		(18,200	)
Danaher Corp., $85.00, 01/17/15		(91	)		(15,652	)
Danaher Corp., $85.00, 09/20/14		(91	)		(5,005	)
Danaher Corp., $90.00, 01/17/15		(310	)		(21,700	)
Delphi, $67.50, 08/16/14		(53	)		(13,780	)
Delphi, $70.00, 01/17/15		(53	)		(19,080	)

76

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Flexibly Managed Fund

	Number of Contracts			Value†
WRITTEN OPTIONS — (continued)
Call Options — (continued)
Delphi, $70.00, 08/16/14		(53	)	$	(7,420	)
Delphi, $75.00, 01/17/15		(53	)		(9,805	)
Entergy, $70.00, 01/17/15		(626	)		(776,240	)
Google, $1250.00, 01/17/15		(87	)		(317,550	)
Google, $1260.00, 01/15/15		(58	)		(193,720	)
Google, $1280.00, 01/17/15		(6	)		(16,680	)
Google, $1280.00, 09/20/14		(6	)		(5,100	)
Google, $1300.00, 01/17/15		(58	)		(136,880	)
Google, $1330.00, 01/17/15		(6	)		(10,440	)
Google, $1330.00, 09/20/14		(6	)		(2,040	)
JPM, $60.00, 01/17/15		(115	)		(17,480	)
JPM, $60.00, 09/20/14		(115	)		(6,785	)
JPM, $65.00, 01/17/15		(924	)		(36,960	)
JPM, $65.00, 01/17/15		(115	)		(4,600	)
JPM, $65.00, 09/20/14		(115	)		(1,150	)
JPM, $67.50, 01/17/15		(924	)		(16,632	)
JPM, $70.00, 01/17/15		(924	)		(11,088	)
JPM, $70.00, 01/17/15		(1,854	)		(22,248	)
Lowe’s, $52.50, 01/17/15		(69	)		(7,245	)
Lowe’s, $52.50, 10/18/14		(69	)		(3,105	)
Lowe’s, $55.00, 01/17/15		(834	)		(46,704	)
Lowe’s, $55.00, 10/18/14		(69	)		(1,242	)
NXP Semiconductors, $60.00, 01/17/15		(180	)		(181,800	)
NXP Semiconductors, $60.00, 10/18/14		(180	)		(147,600	)
NXP Semiconductors, $65.00, 01/17/15		(180	)		(128,880	)
NXP Semiconductors, $65.00, 10/18/14		(180	)		(94,860	)
Orly, $155.00, 01/17/15		(23	)		(14,030	)
Orly, $155.00, 08/16/14		(23	)		(5,980	)
Orly, $165.00, 01/17/15		(23	)		(6,900	)
Orly, $165.00, 08/16/14		(23	)		(1,334	)
Pfiizer, $35.00, 01/17/15		(472	)		(5,664	)
Pfizer, $32.00, 01/17/15		(472	)		(21,712	)
Phillip Morris, $85.00, 01/17/15		(851	)		(246,790	)
Phillip Morris, $87.50, 01/17/15		(473	)		(85,140	)
Phillip Morris, $90.00, 01/17/15		(324	)		(33,372	)
Phillip Morris, $92.50, 01/17/15		(163	)		(9,128	)
Phillip Morris, $95.00, 01/17/15		(219	)		(7,665	)
Phillip Morris, $97.50, 01/17/15		(591	)		(9,456	)
PNC, $87.50, 01/17/15		(590	)		(200,600	)
PNC, $90.00, 01/17/15		(83	)		(39,010	)
PNC, $90.00, 08/16/14		(83	)		(10,458	)
PNC, $90.00, 08/16/14		(83	)		(20,916	)
PNC, $95.00, 01/17/15		(174	)		(30,450	)
Proctor & Gamble Co., $85.00, 01/17/15		(520	)		(28,600	)
Proctor & Gamble, Corp. $85.00, 01/17/15		(1,592	)		(87,560	)
Seagate, $57.50, 01/17/2015		(833	)		(334,866	)
State Street Corp., $70.00, 01/17/15		(104	)		(25,480	)
State Street Corp., $70.00, 08/16/14		(104	)		(7,072	)
State Street Corp., $72.50, 01/17/15		(104	)		(16,640	)
State Street Corp., $72.50, 08/16/14		(104	)		(2,288	)
TE Connectivity, $65.00, 07/19/14		(118	)		(590	)
TE Connectivity, $65.00, 10/18/14		(118	)		(10,620	)
Texas Instrument, $45.00, 01/17/15		(2,511	)		(1,004,400	)
Texas Instrument, $48.00, 10/18/14		(153	)		(26,469	)
Texas Instrument, $50.00, 01/17/15		(1,035	)		(165,600	)
Texas Instrument, $50.00, 01/17/15		(306	)		(48,960	)
Texas Instrument, $50.00, 01/18/14		(1,035	)		(90,045	)
Texas Instrument, $50.00, 10/18/14		(153	)		(13,311	)
Thermo Fisher Scientific, $135.00, 01/17/15		(55	)		(9,075	)

	Number of Contracts			Value†
Call Options — (continued)
Thermo Fisher Scientific, $135.00, 09/20/14		(55	)	$	(1,925	)
Thermo Fisher Scientific, $140.00, 01/17/15		(55	)		(6,600	)
Thermo Fisher Scientific, $140.00, 09/20/14		(55	)		(1,100	)
TRW Automotive Holdings Corp., $90.00, 07/19/14		(42	)		(4,620	)
TRW Automotive Holdings Corp., $90.00, 10/18/14		(42	)		(15,120	)
TRW Automotive Holdings Corp., $95.00, 07/19/14		(42	)		(420	)
TRW Automotive Holdings Corp., $95.00, 10/18/14		(42	)		(8,022	)
United Technologies Corp., $120 .00, 01/17/15		(594	)		(204,930	)
United Technologies Corp., $125.00, 01/17/15		(594	)		(100,980	)
United Technologies Corp., $125.00, 01/17/15		(59	)		(10,030	)
United Technologies Corp., $125.00, 08/16/14		(59	)		(708	)
United Technologies Corp., $130.00, 01/17/15		(59	)		(5,133	)
United Technologies Corp., $130.00, 08/16/14		(59	)		(59	)
UnitedHealth Group, $82.50, 01/17/15		(177	)		(72,570	)
UnitedHealth Group, $82.50, 09/20/14		(177	)		(41,418	)
UnitedHealth Group, $85.00, 01/17/15		(483	)		(147,315	)
UnitedHealth Group, $85.00, 09/20/14		(177	)		(22,302	)
UnitedHealth Group, $90.00, 01/17/15		(543	)		(86,337	)
Dentsply, $50.00, 07/19/14		(94	)		(1,410	)
Dentsply, $50.00, 10/18/14		(94	)		(7,520	)
TOTAL WRITTEN OPTIONS (Premiums $(8,471,533))					(8,444,768	)

† See Security Valuation Note.

* Non-income producing security.

@ Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “accredited investors”. Unless otherwise indicated, the security is considered liquid.

• Variable Rate Security.

^ Illiquid security. The total market value of illiquid securities at June 30, 2014 is $7,012,054.

‡ Loan Agreements in which the Fund invests generally pay interest at rates which are periodically predetermined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the Prime Rate offered by one or more major U.S. banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (“LIBOR”) or (iii) the Certificate of Deposit rate. Rate shown represents the actual rate at June 30, 2014. Loan Agreements, while exempt from registration under the Security Act of 1933, as amended (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Floating rate Loan Agreements often require repayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.

LLC — Limited Liability Company.

LP — Limited Partnership.

PLC — Public Limited Company.

77

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Flexibly Managed Fund

Country Weightings as of 06/30/2014††
United States	92	%
Netherlands	2
Bermuda	1
Cayman Islands	1
Germany	1
Luxembourg	1
United Kingdom	1
Other	1
Total	100	%

†† % of total investments as of June 30, 2014

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	1,777,751,597	$	1,777,751,597	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		44,737,786		44,737,786		—		—
PREFERRED STOCKS		11,080,663		11,080,663		—		—
U.S. TREASURY OBLIGATIONS		148,746,348		—		148,746,348		—
AGENCY OBLIGATION		6,662,196		—		6,662,196		—
ASSET BACKED SECURITIES		16,121,377		—		16,121,377		—
CORPORATE BONDS		516,210,964		—		516,210,964		—
LOAN AGREEMENTS		162,286,736		—		162,286,736		—
SHORT-TERM INVESTMENTS		229,042,470		229,042,470		—		—
TOTAL INVESTMENTS	$	2,912,640,137	$	2,062,612,516	$	850,055,662	$	—

LIABILITIES TABLE
Description	Total Market Value at 06/30/2014			Level 1 Quoted Price			Level 2 Significant Observable Input			Level 3 Significant Unobservable Input
WRITTEN OPTIONS	$	(8,444,768	)	$	(388,151	)	$	(8,056,617	)	$	—
Total Liabilities	$	(8,444,768	)	$	(388,151	)	$	(8,056,617	)	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

78

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Balanced Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 59.8%
Penn Series Index 500 Fund* (Cost $22,228,802)		3,142,690	$	47,423,195
AFFILIATED FIXED INCOME FUNDS — 39.9%
Penn Series Quality Bond Fund* (Cost $26,640,117)		2,395,111		31,615,464
SHORT-TERM INVESTMENTS — 0.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $271,443)		271,443		271,443
TOTAL INVESTMENTS — 100.0% (Cost $49,140,362)			$	79,310,102

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

	ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	47,423,195	$	47,423,195	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		31,615,464		31,615,464		—		—
SHORT-TERM INVESTMENTS		271,443		271,443		—		—
TOTAL INVESTMENTS	$	79,310,102	$	79,310,102	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

79

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Growth Stock Fund

	Number of Shares		Value†
COMMON STOCKS — 97.0%
Aerospace & Defense — 2.5%
The Boeing Co.		30,800	$	3,918,684
United Technologies Corp.		24,000		2,770,800
				6,689,484
Airlines — 2.2%
American Airlines Group, Inc.*		83,000		3,565,680
Delta Air Lines, Inc.		28,400		1,099,648
United Continental Holdings, Inc.*		30,300		1,244,421
				5,909,749
Apparel — 1.3%
Hanesbrands, Inc.		13,300		1,309,252
NIKE, Inc., Class B		18,800		1,457,940
Under Armour, Inc., Class A*		12,700		755,523
				3,522,715
Auto Manufacturers — 0.6%
Tesla Motors, Inc.*		7,000		1,680,420
Auto Parts & Equipment — 0.7%
Delphi Automotive PLC		29,200		2,007,208
Banks — 1.1%
Morgan Stanley		49,400		1,597,102
State Street Corp.		21,000		1,412,460
				3,009,562
Beverages — 1.0%
PepsiCo, Inc.		29,300		2,617,662
Biotechnology — 8.5%
Alexion Pharmaceuticals, Inc.*		17,900		2,796,875
Biogen Idec, Inc.*		17,500		5,517,925
Celgene Corp.*		31,200		2,679,456
Gilead Sciences, Inc.*		97,100		8,050,561
Incyte Corp. Ltd.*		19,700		1,111,868
Regeneron Pharmaceuticals, Inc.*		3,500		988,645
Vertex Pharmaceuticals, Inc.*		19,300		1,827,324
				22,972,654
Building Materials — 0.3%
Martin Marietta Materials, Inc.		6,700		884,735
Chemicals — 2.9%
Ecolab, Inc.		26,000		2,894,840
FMC Corp.		1,900		135,261
Praxair, Inc.		13,200		1,753,488
The Sherwin-Williams Co.		15,600		3,227,796
				8,011,385
Commercial Services — 2.8%
MasterCard, Inc., Class A		77,200		5,671,884
Tyco International Ltd.		42,900		1,956,240
				7,628,124
Computers — 2.9%
Apple, Inc.		51,600		4,795,188
Cognizant Technology Solutions Corp., Class A*		28,400		1,389,044
Stratasys Ltd.*		13,700		1,556,731
				7,740,963

	Number of Shares		Value†
Cosmetics & Personal Care — 0.4%
The Estee Lauder Cos., Inc., Class A		14,900	$	1,106,474
Distribution & Wholesale — 0.6%
Fastenal Co.		13,300		658,217
W.W. Grainger, Inc.		4,000		1,017,080
				1,675,297
Diversified Financial Services — 5.5%
American Express Co.		26,000		2,466,620
BlackRock, Inc.		4,400		1,406,240
IntercontinentalExchange Group, Inc.		5,700		1,076,730
Invesco Ltd.		31,900		1,204,225
TD Ameritrade Holding Corp.		46,300		1,451,505
Visa, Inc., Class A		34,100		7,185,211
				14,790,531
Food — 0.4%
Nestle S.A.		8,978		695,522
Whole Foods Market, Inc.		9,000		347,670
				1,043,192
Healthcare Products — 1.1%
IDEXX Laboratories, Inc.*		7,400		988,418
Intuitive Surgical, Inc.*		4,800		1,976,640
				2,965,058
Healthcare Services — 1.2%
Humana, Inc.		11,700		1,494,324
UnitedHealth Group, Inc.		22,900		1,872,075
				3,366,399
Home Builders — 0.8%
D.R. Horton, Inc.		43,700		1,074,146
Lennar Corp., Class A		24,900		1,045,302
				2,119,448
Internet — 20.3%
Amazon.com, Inc.*		36,300		11,789,514
Baidu, Inc. ADR*		19,400		3,624,114
Ctrip.com International Ltd. ADR*		32,800		2,100,512
Facebook, Inc., Class A*		55,800		3,754,782
Google, Inc., Class A*		14,200		8,302,314
Google, Inc., Class C*		14,700		8,456,616
LinkedIn Corp., Class A*		10,100		1,731,847
NAVER Corp.		1,609		1,327,846
Netflix, Inc.*		6,500		2,863,900
The priceline.com, Inc.*		7,400		8,902,200
The Tencent Holdings Ltd.		69,000		1,052,307
Vipshop Holdings Ltd. ADR*		5,900		1,107,666
				55,013,618
Leisure Time — 0.4%
Harley-Davidson, Inc.		14,600		1,019,810
Lodging — 3.9%
Las Vegas Sands Corp.		43,200		3,292,704
MGM Resorts International*		83,300		2,199,120
Starwood Hotels & Resorts Worldwide, Inc.		16,100		1,301,202
Wynn Macau Ltd.		335,200		1,314,781
Wynn Resorts Ltd.		11,700		2,428,452
				10,536,259

80

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Growth Stock Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Machinery — Diversified — 1.8%
Flowserve Corp.		7,800	$	579,930
Roper Industries, Inc.		18,100		2,642,781
Wabtec Corp.		19,800		1,635,282
				4,857,993
Media — 1.8%
Charter Communications, Inc., Class A*		3,600		570,168
The Walt Disney Co.		24,500		2,100,630
Twenty-First Century Fox, Inc., Class A		63,400		2,228,510
				4,899,308
Metal Fabricate/Hardware — 2.1%
Precision Castparts Corp.		22,200		5,603,280
Miscellaneous Manufacturing — 2.0%
Danaher Corp.		68,100		5,361,513
Oil & Gas — 3.7%
Concho Resources, Inc.*		10,700		1,546,150
Continental Resources, Inc.*		5,900		932,436
EQT Corp.		15,800		1,689,020
Pioneer Natural Resources Co.		15,700		3,608,017
Range Resources Corp.		26,097		2,269,134
				10,044,757
Pharmaceuticals — 4.4%
Allergan, Inc.		14,100		2,386,002
McKesson Corp.		29,900		5,567,679
Pharmacyclics, Inc.*		9,000		807,390
Valeant Pharmaceuticals International, Inc.*		25,000		3,153,000
				11,914,071
Retail — 9.6%
AutoZone, Inc.*		5,500		2,949,320
CarMax, Inc.*		44,000		2,288,440
Chipotle Mexican Grill, Inc.*		4,100		2,429,291
Costco Wholesale Corp.		13,500		1,554,660
CVS Caremark Corp.		36,000		2,713,320
Dollar Tree, Inc.*		12,200		664,412
Lowe’s Cos., Inc.		67,500		3,239,325
Ross Stores, Inc.		20,100		1,329,213
Starbucks Corp.		50,900		3,938,642
The Home Depot, Inc.		34,000		2,752,640
Tractor Supply Co.		34,000		2,053,600
				25,912,863
Semiconductors — 1.0%
ASML Holding N.V.		21,400		1,995,978
QUALCOMM, Inc.		8,300		657,360
				2,653,338
Software — 4.3%
Akamai Technologies, Inc.*		16,200		989,172
Fiserv, Inc.*		17,800		1,073,696
NetSuite, Inc.*		11,700		1,016,496
Red Hat, Inc.*		27,800		1,536,506
Salesforce.com, Inc.*		60,100		3,490,608
ServiceNow, Inc.*		20,600		1,276,376

	Number of Shares		Value†
Software — (continued)
VMware, Inc., Class A*		14,300	$	1,384,383
Workday, Inc., Class A*		10,200		916,572
				11,683,809
Telecommunications — 3.0%
Crown Castle International Corp.*		73,800		5,480,388
SoftBank Corp.		35,300		2,628,379
				8,108,767
Transportation — 1.9%
FedEx Corp.		10,600		1,604,628
J.B. Hunt Transport Services, Inc.		9,400		693,532
Kansas City Southern		21,800		2,343,718
Union Pacific Corp.		4,700		468,825
				5,110,703
TOTAL COMMON STOCKS (Cost $172,986,378)				262,461,149
PREFERRED STOCKS — 0.2%
Internet — 0.0%
Livingsocial, Series F, CONV*^~		15,066		6,930
Lodging — 0.2%
Airbnb, Inc. Series D*^~		3,333		407,090
TOTAL PREFERRED STOCKS (Cost $522,947)				414,020
REAL ESTATE INVESTMENT TRUSTS — 1.9%
Diversified — 1.9%
American Tower Corp. (Cost $2,624,297)		57,400		5,164,852
SHORT-TERM INVESTMENTS — 0.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		2,401,449		2,401,449
T. Rowe Price Reserve Investment Fund		1,008		1,008
TOTAL SHORT-TERM INVESTMENTS (Cost $2,402,457)				2,402,457
TOTAL INVESTMENTS — 100.0% (Cost $178,536,079)			$	270,442,478

^ Illiquid security. The total market value of illiquid securities at June 30, 2014 is $414,020.

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at June 30, 2014 is $414,020.

ADR — American Depository Receipt.

CONV — Convertible Security.

PLC — Public Limited Company.

81

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Growth Stock Fund

Country Weightings as of 06/30/2014††
United States	92%
China	2
Bermuda	1
Canada	1
Japan	1
Netherlands	1
United Kingdom	1
Other	1
Total	100%

†† % of total investments as of June 30, 2014

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
TOTAL COMMON STOCKS	$	262,461,149	$	262,461,149	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS
Diversified		5,164,852		5,164,852		—		—
PREFERRED STOCKS		414,020		—		—		414,020
SHORT-TERM INVESTMENTS		2,402,457		2,402,457		—		—
TOTAL INVESTMENTS	$	270,442,478	$	270,028,458	$	—	$	414,020

Following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Investments in Securities (Market Value)
Balance as of 12/31/2013	$	9,491
Purchases		407,090
Change in Appreciation/(Depreciation)		(2,561	)
Balance as of 6/30/2014	$	414,020

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

82

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 98.7%
Advertising — 0.6%
Omnicom Group, Inc.		4,582	$	326,330
Aerospace & Defense — 2.9%
United Technologies Corp.		14,114		1 ,629,461
Apparel — 4.6%
LVMH Moet Hennessy Louis Vuitton S.A.		7,057		1,360,572
NIKE, Inc., Class B		7,426		575,886
VF Corp.		9,886		622,818
				2,559,276
Auto Parts & Equipment — 1.0%
Johnson Controls, Inc.		10,879		543,188
Beverages — 2.5%
PepsiCo, Inc.		4,988		445,628
Pernod Ricard S.A.		7,757		931,520
				1,377,148
Chemicals — 4.3%
Monsanto Co.		6,996		872,681
Praxair, Inc.		7,259		964,286
The Sherwin-Williams Co.		2,797		578,727
				2,415,694
Commercial Services — 2.4%
Equifax, Inc.		5,462		396,214
Experian PLC		18,840		318,557
MasterCard, Inc., Class A		8,903		654,103
				1,368,874
Computers — 8.7%
Accenture PLC, Class A		27,498		2,222,938
Apple, Inc.		4,788		444,949
Cognizant Technology Solutions Corp., Class A*		8,566		418,963
EMC Corp.		49,088		1,292,978
International Business Machines Corp.		2,695		488,523
				4,868,351
Cosmetics & Personal Care — 5.5%
Colgate-Palmolive Co.		26,748		1,823,679
The Procter & Gamble Co.		15,924		1,251,467
				3,075,146
Distribution & Wholesale — 1.6%
W.W. Grainger, Inc.		3,638		925,034
Diversified Financial Services — 7.4%
CME Group, Inc.		9,578		679,559
Franklin Resources, Inc.		21,958		1,270,051
The Charles Schwab Corp.		9,715		261,625
Visa, Inc., Class A		9,070		1,911,139
				4,122,374
Electronics — 5.4%
Amphenol Corp., Class A		4,359		419,946
Mettler-Toledo International, Inc.*		3,572		904,359

	Number of Shares		Value†
Electronics — (continued)
Thermo Fisher Scientific, Inc.		10,377	$	1,224,486
Waters Corp.*		4,804		501,730
				3,050,521
Food — 2.0%
Danone S.A.		14,815		1,100,323
Healthcare Products — 3.1%
DENTSPLY International, Inc.		24,262		1,148,806
Patterson Cos., Inc.		6,013		237,574
St. Jude Medical, Inc.		4,742		328,383
				1,714,763
Household Products & Wares — 0.6%
Church & Dwight Co., Inc.		4,989		348,981
Internet — 5.6%
eBay, Inc.*		7,528		376,851
Google, Inc., Class A*		4,716		2,757,304
				3,134,155
Media — 8.5%
Discovery Communications, Inc., Class A*		9,238		686,199
The Walt Disney Co.		17,068		1,463,410
Time Warner, Inc.		18,694		1,313,253
Twenty-First Century Fox, Inc., Class A		25,485		895,798
Viacom, Inc., Class B		4,497		390,025
				4,748,685
Metal Fabricate/Hardware — 1.0%
Precision Castparts Corp.		2,278		574,967
Mining — 0.4%
Rio Tinto PLC		4,540		241,522
Miscellaneous Manufacturing — 3.2%
Danaher Corp.		23,086		1,817,561
Oil & Gas — 0.9%
Occidental Petroleum Corp.		4,707		483,079
Oil & Gas Services — 2.9%
Schlumberger Ltd.		13,681		1,613,674
Pharmaceuticals — 9.2%
Abbott Laboratories		18,249		746,384
Allergan, Inc.		1,669		282,428
Express Scripts Holding Co.*		16,367		1,134,724
Johnson & Johnson		7,171		750,230
Mead Johnson Nutrition Co.		10,632		990,584
Zoetis, Inc.		37,809		1,220,096
				5,124,446
Retail — 5.0%
AutoZone, Inc.*		225		120,654
CVS Caremark Corp.		17,494		1,318,523
Inditex S.A.		2,552		392,777
McDonald’s Corp.		9,465		953,504
				2,785,458

83

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Semiconductors — 5.0%
Microchip Technology, Inc.		15,225	$	743,132
Sensata Technologies Holding N.V.*		26,635		1,245,985
Taiwan Semiconductor Manufacturing Co. Ltd.ADR		38,163		816,307
				2,805,424
Software — 3.2%
MSCI, Inc.*		4,403		201,878
Oracle Corp.		38,870		1,575,401
				1,777,279
Transportation — 1.2%
Expeditors International of Washington, Inc.		14,747		651,227
TOTAL COMMON STOCKS (Cost $46,872,032)				55,182,941
SHORT-TERM INVESTMENTS — 1.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $748,354)		748,354		748,354
TOTAL INVESTMENTS — 100.0% (Cost $47,620,386)			$	55,931,295

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 06/30/2014 ††
United States	82	%
France	9
Ireland	5
Netherlands	2
Spain	1
Taiwan	1
Total	100	%

†† % of total investments as of June 30, 2014

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
TOTAL COMMON STOCKS	$	55,182,941	$	55,182,941	$	—	$	—
SHORT-TERM INVESTMENTS		748,354		748,354		—		—
TOTAL INVESTMENTS	$	55,931,295	$	55,931,295	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

84

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Core Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 98.1%
Aerospace & Defense — 1.3%
B/E Aerospace, Inc.*		17,550	$	1,623,200
Airlines — 2.1%
American Airlines Group, Inc.*		30,430		1,307,273
Delta Air Lines, Inc.		35,000		1,355,200
				2,662,473
Apparel — 3.3%
NIKE, Inc., Class B		32,810		2,544,415
Under Armour, Inc., Class A*		27,800		1,653,822
				4,198,237
Auto Parts & Equipment — 1.6%
Delphi Automotive PLC		28,470		1,957,028
Banks — 1.6%
First Republic Bank		36,250		1,993,387
Beverages — 3.8%
Brown-Forman Corp., Class B		12,240		1,152,641
Constellation Brands, Inc., Class A*		40,350		3,556,045
				4,708,686
Biotechnology — 8.2%
Alexion Pharmaceuticals, Inc.*		10,130		1,582,812
Biogen Idec, Inc.*		7,960		2,509,868
Celgene Corp.*		30,160		2,590,141
Gilead Sciences, Inc.*		24,547		2,035,192
Regeneron Pharmaceuticals, Inc.*		5,360		1,514,039
				10,232,052
Chemicals — 2.1%
Monsanto Co.		21,450		2,675,673
Commercial Services — 6.2%
Mastercard, Inc., Class A		39,440		2,897,657
McGraw Hill Financial, Inc.		19,970		1,658,109
United Rentals, Inc.*		16,620		1,740,613
Vantiv, Inc., Class A*		46,010		1,546,856
				7,843,235
Computers — 4.2%
Apple, Inc.		57,035		5,300,263
Diversified Financial Services — 8.4%
Affiliated Managers Group, Inc.*		10,077		2,069,816
American Express Co.		31,660		3,003,584
IntercontinentalExchange Group, Inc.		11,620		2,195,018
Visa, Inc., Class A		15,330		3,230,184
				10,498,602
Diversified Operations — 1.1%
Eaton Corp. PLC		17,430		1,345,247
Electronics — 1.0%
TE Connectivity Ltd.		20,940		1,294,930
Insurance — 1.7%
Aon PLC		23,760		2,140,538

	Number of Shares		Value†
Internet — 14.6%
Amazon.com, Inc.*		9,584	$	3,112,692
Facebook, Inc., Class A*		60,320		4,058,933
Google, Inc., Class A*		5,970		3,490,480
Google, Inc., Class C*		5,180		2,979,950
Netflix, Inc.*		5,240		2,308,744
The priceline.com, Inc.*		1,950		2,345,850
				18,296,649
Lodging — 1.6%
Las Vegas Sands Corp.		27,140		2,068,611
Machinery — Diversified — 1.8%
Cummins, Inc.		14,245		2,197,861
Media — 7.6%
CBS Corp., Class B		29,255		1,817,906
Liberty Global PLC, Class A*		7,497		331,517
Liberty Global PLC, Series C*		72,529		3,068,702
Time Warner, Inc.		26,270		1,845,468
Twenty-First Century Fox, Inc., Class A		68,650		2,413,047
				9,476,640
Metal Fabricate/Hardware — 1.6%
Precision Castparts Corp.		8,159		2,059,332
Oil & Gas — 4.7%
Antero Resources Corp.*		21,998		1,443,729
Marathon Petroleum Corp.		11,524		899,679
Pioneer Natural Resources Co.		10,130		2,327,975
Southwestern Energy Co.*		26,340		1,198,206
				5,869,589
Oil & Gas Services — 2.3%
Halliburton Co.		40,260		2,858,863
Pharmaceuticals — 5.1%
AbbVie, Inc.		49,580		2,798,295
Bristol-Myers Squibb Co.		37,970		1,841,925
McKesson Corp.		9,410		1,752,236
				6,392,456
Retail — 2.8%
Chipotle Mexican Grill, Inc.*		3,010		1,783,455
Starbucks Corp.		21,950		1,698,491
				3,481,946
Semiconductors — 1.8%
ARM Holdings PLC ADR		15,860		717,506
Micron Technology, Inc.*		46,020		1,516,359
				2,233,865
Software — 4.3%
Adobe Systems, Inc.*		22,680		1,641,125
Cerner Corp.*		27,680		1,427,734
Salesforce.com, Inc.*		25,650		1,489,752
ServiceNow, Inc.*		13,770		853,189
				5,411,800

85

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Core Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Telecommunications — 1.8%
SBA Communications Corp., Class A*		22,250	$	2,276,175
Transportation — 1.5%
Canadian Pacific Railway Ltd.		10,740		1,945,444
TOTAL COMMON STOCKS (Cost $86,975,341)				123,042,782
SHORT-TERM INVESTMENTS — 1.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,419,865)		2,419,865		2,419,865
TOTAL INVESTMENTS — 100.0% (Cost $89,395,206)			$	125,462,647

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 06/30/2014††
United States	92	%
United Kingdom	4
Canada	2
Ireland	1
Switzerland	1
Total	100	%

†† % of total investments as of June 30, 2014

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
TOTAL COMMON STOCKS	$	123,042,782	$	123,042,782	$	—	$	—
SHORT-TERM INVESTMENTS		2,419,865		2,419,865		—		—
TOTAL INVESTMENTS	$	125,462,647	$	125,462,647	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

86

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 96.7%
Advertising — 1.4%
Omnicom Group, Inc.		43,833	$	3,121,786
Aerospace & Defense — 1.4%
Northrop Grumman Corp.		26,264		3,141,962
Agriculture — 1.2%
Philip Morris International, Inc.		33,750		2,845,463
Auto Manufacturers — 1.3%
General Motors Co.		80,991		2,939,973
Banks — 12.7%
Bank of America Corp.		256,446		3,941,575
Citigroup, Inc.		83,293		3,923,100
Fifth Third Bancorp		143,145		3,056,146
JPMorgan Chase & Co.		99,022		5,705,648
State Street Corp.		55,870		3,757,816
The PNC Financial Services Group, Inc.		40,952		3,646,775
Wells Fargo & Co.		92,787		4,876,885
				28,907,945
Beverages — 1.3%
PepsiCo, Inc.		32,214		2,877,999
Building Materials — 1.2%
Vulcan Materials Co.		42,002		2,677,628
Chemicals — 1.3%
E.I. du Pont de Nemours & Co.		46,736		3,058,404
Coal — 0.5%
CONSOL Energy, Inc.		23,772		1,095,176
Computers — 2.4%
Apple, Inc.		27,484		2,554,088
EMC Corp.		113,068		2,978,211
				5,532,299
Diversified Financial Services — 4.2%
Ameriprise Financial, Inc.		30,656		3,678,720
Discover Financial Services		55,822		3,459,848
Legg Mason, Inc.		47,387		2,431,427
				9,569,995
Diversified Operations — 1.5%
Eaton Corp. PLC		43,345		3,345,367
Electric — 3.3%
Calpine Corp.*		102,178		2,432,858
NextEra Energy, Inc.		27,173		2,784,689
Northeast Utilities		48,311		2,283,661
				7,501,208
Electronics — 1.2%
Honeywell International, Inc.		29,323		2,725,573
Food — 1.3%
Mondelez International, Inc., Class A		77,543		2,916,392
Healthcare Products — 1.7%
Covidien PLC		42,890		3,867,820

	Number of Shares		Value†
Healthcare Services — 2.8%
HCA Holdings, Inc.*		44,701	$	2,520,242
UnitedHealth Group, Inc.		48,190		3,939,533
				6,459,775
Insurance — 5.7%
American International Group, Inc.		65,871		3,595,239
MetLife, Inc.		64,824		3,601,622
The Travelers Cos., Inc.		30,287		2,849,098
Unum Group		85,013		2,955,052
				13,001,011
Internet — 3.7%
AOL, Inc.*		57,823		2,300,777
Liberty Interactive Corp., Class A*		97,811		2,871,731
Symantec Corp.		145,925		3,341,683
				8,514,191
Machinery — Construction & Mining — 0.9%
Terex Corp.		51,862		2,131,528
Machinery — Diversified — 0.9%
Deere & Co.		22,590		2,045,525
Media — 4.8%
Comcast Corp., Class A		63,363		3,401,326
DIRECTV*		27,467		2,334,969
Liberty Global PLC, Class A*		48,868		2,160,943
Viacom, Inc., Class B		34,027		2,951,162
				10,848,400
Miscellaneous Manufacturing — 2.6%
Illinois Tool Works, Inc.		41,320		3,617,979
Ingersoll-Rand PLC		36,442		2,277,990
				5,895,969
Oil & Gas — 8.6%
Chevron Corp.		39,615		5,171,738
Exxon Mobil Corp.		26,240		2,641,843
Hess Corp.		33,492		3,312,024
Marathon Oil Corp.		100,005		3,992,200
Noble Energy, Inc.		37,460		2,901,652
Valero Energy Corp.		30,755		1,540,825
				19,560,282
Oil & Gas Services — 2.9%
National Oilwell Varco, Inc.		42,479		3,498,145
Schlumberger Ltd.		26,185		3,088,521
				6,586,666
Packaging and Containers — 1.4%
Sealed Air Corp.		92,972		3,176,853
Pharmaceuticals — 10.4%
Bristol-Myers Squibb Co.		59,688		2,895,465
Eli Lilly & Co.		63,237		3,931,444
Forest Laboratories, Inc.*		21,915		2,169,585
Merck & Co., Inc.		69,788		4,037,236
Pfizer, Inc.		156,529		4,645,781

87

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Pharmaceuticals — (continued)
Sanofi ADR		68,115	$	3,621,674
Teva Pharmaceutical Industries Ltd. ADR		43,317		2,270,677
				23,571,862
Retail — 5.1%
AutoNation, Inc.*		31,568		1,883,978
CVS Caremark Corp.		41,423		3,122,052
Family Dollar Stores, Inc.		51,949		3,435,907
Lowe’s Cos., Inc.		65,062		3,122,325
				11,564,262
Software — 1.7%
Microsoft Corp.		93,723		3,908,249
Telecommunications — 5.8%
Cisco Systems, Inc.		106,640		2,650,004
Knowles Corp.*		66,677		2,049,651
Motorola Solutions, Inc.		44,659		2,972,950
Verizon Communications, Inc.		61,940		3,030,724
Vodafone Group PLC- ADR		73,837		2,465,417
				13,168,746
Transportation — 1.5%
Norfolk Southern Corp.		33,444		3,445,735
TOTAL COMMON STOCKS (Cost $180,841,033)				220,004,044
REAL ESTATE INVESTMENT TRUSTS — 1.4%
Diversified — 1.4%
Weyerhaeuser Co. (Cost $2,787,678)		93,188		3,083,591
SHORT-TERM INVESTMENTS — 1.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $4,362,024)		4,362,024		4,362,024
TOTAL INVESTMENTS — 100.0% (Cost $187,990,735)			$	227,449,659

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 06/30/2014††
United States	91%
Ireland	4
France	3
Israel	1
United Kingdom	1
Total	100%

†† % of total investments as of June 30, 2014

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	220,004,044	$	220,004,044	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		3,083,591		3,083,591		—		—
SHORT-TERM INVESTMENTS		4,362,024		4,362,024		—		—
TOTAL INVESTMENTS	$	227,449,659	$	227,449,659	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

88

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — 92.6%
Aerospace & Defense — 2.8%
The Boeing Co.		25,397	$	3,231,260
United Technologies Corp.		19,299		2,228,070
				5,459,330
Agriculture — 1.3%
Reynolds American, Inc.		40,274		2,430,536
Auto Manufacturers — 0.8%
Volkswagen AG ADR		30,770		1,613,887
Banks — 14.0%
Bank of America Corp.		315,903		4,855,429
Citigroup, Inc.		111,523		5,252,734
JPMorgan Chase & Co.		92,468		5,328,006
Morgan Stanley		113,244		3,661,179
Regions Financial Corp.		256,884		2,728,108
SunTrust Banks, Inc.		61,269		2,454,436
The PNC Financial Services Group, Inc.		34,566		3,078,102
				27,357,994
Biotechnology — 0.7%
Gilead Sciences, Inc.*		17,052		1,413,781
Chemicals — 1.4%
LyondellBasell Industries N.V., Class A		28,429		2,776,092
Computers — 1.0%
Apple, Inc.		21,507		1,998,646
Diversified Financial Services — 6.0%
Affiliated Managers Group, Inc.*		12,911		2,651,919
American Express Co.		20,547		1,949,294
Discover Financial Services		62,418		3,868,668
Invesco Ltd.		84,364		3,184,741
				11,654,622
Diversified Operations — 0.9%
Eaton Corp. PLC		22,723		1,753,761
Electric — 2.1%
NextEra Energy, Inc.		40,266		4,126,460
Electrical Components & Equipment — 0.9%
Emerson Electric Co.		27,717		1,839,300
Electronics — 2.7%
Honeywell International, Inc.		19,272		1,791,332
Thermo Fisher Scientific, Inc.		28,900		3,410,200
				5,201,532
Food — 1.0%
Nestle SA ADR		24,079		1,870,216
Gas — 2.1%
Sempra Energy		39,875		4,175,311
Healthcare Products — 1.9%
Covidien PLC		18,621		1,679,242
Stryker Corp.		24,344		2,052,686
				3,731,928

	Number of Shares		Value†
Insurance — 4.1%
ACE Ltd.		20,866	$	2,163,804
MetLife, Inc.		67,190		3,733,076
The Allstate Corp.		36,044		2,116,504
				8,013,384
Internet — 0.9%
Google, Inc., Class C*		3,128		1,799,476
Machinery — Construction & Mining — 1.6%
Caterpillar, Inc.		29,351		3,189,573
Media — 3.4%
Comcast Corp., Class A		46,804		2,512,439
The Walt Disney Co.		48,398		4,149,644
				6,662,083
Oil & Gas — 16.5%
Anadarko Petroleum Corp.		28,098		3,075,888
Chevron Corp.		43,674		5,701,641
ConocoPhillips		65,134		5,583,938
Devon Energy Corp.		37,961		3,014,103
Exxon Mobil Corp.		41,333		4,161,407
Marathon Oil Corp.		67,674		2,701,546
Occidental Petroleum Corp.		55,899		5,736,914
Phillips 66		28,161		2,264,989
				32,240,426
Pharmaceuticals — 9.2%
Merck & Co., Inc.		84,704		4,900,127
Pfizer, Inc.		150,124		4,455,680
Roche Holding Ltd. AG ADR		95,818		3,574,011
Sanofi ADR		47,271		2,513,399
Shire PLC ADR		10,361		2,439,912
				17,883,129
Retail — 5.1%
CVS Caremark Corp.		61,180		4,611,136
Dollar General Corp.*		18,097		1,038,044
The Home Depot, Inc.		23,521		1,904,260
The TJX Cos., Inc.		46,164		2,453,617
				10,007,057
Semiconductors — 2.7%
Intel Corp.		73,033		2,256,720
QUALCOMM, Inc.		36,763		2,911,629
				5,168,349
Software — 1.5%
Microsoft Corp.		69,771		2,909,451
Telecommunications — 4.8%
Corning, Inc.		144,647		3,175,002
Telefonaktiebolaget LM Ericsson ADR		230,435		2,783,655
Verizon Communications, Inc.		68,743		3,363,595
				9,322,252
Textiles — 0.9%
Mohawk Industries, Inc.*		12,792		1,769,645

89

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Large Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Transportation — 2.3%
C.H. Robinson Worldwide, Inc.		46,703	$	2,979,184
Union Pacific Corp.		14,204		1,416,849
				4,396,033
TOTAL COMMON STOCKS (Cost $131,094,005)				180,764,254
REAL ESTATE INVESTMENT TRUSTS — 2.5%
Regional Malls — 1.4%
Simon Property Group, Inc.		16,381		2,723,833
Storage & Warehousing — 1.1%
Public Storage		12,461		2,135,192
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $4,226,734)				4,859,025
SHORT-TERM INVESTMENTS — 4.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $9,471,674)		9,471,674		9,471,674
TOTAL INVESTMENTS — 100.0% (Cost $144,792,413)			$	195,094,953

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 06/30/2014††
United States	88	%
Switzerland	4
Ireland	2
Sweden	2
France	1
Netherlands	1
United Kingdom	1
Other	1
Total	100	%

†† % of total investments as of June 30, 2014

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	180,764,254	$	180,764,254	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		4,859,025		4,859,025		—		—
SHORT-TERM INVESTMENTS		9,471,674		9,471,674		—		—
TOTAL INVESTMENTS	$	195,094,953	$	195,094,953	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

90

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — 96.2%
Advertising — 0.1%
Omnicom Group, Inc.		6,067	$	432,092
The Interpublic Group of Cos., Inc.		10,134		197,714
				629,806
Aerospace & Defense — 1.9%
General Dynamics Corp.		7,897		920,395
L-3 Communications Holdings, Inc.		2,100		253,575
Lockheed Martin Corp.		6,337		1,018,546
Northrop Grumman Corp.		5,092		609,156
Raytheon Co.		7,476		689,661
Rockwell Collins, Inc.		3,245		253,564
The Boeing Co.		16,021		2,038,352
United Technologies Corp.		20,142		2,325,394
				8,108,643
Agriculture — 1.6%
Altria Group, Inc.		47,278		1,982,839
Archer-Daniels-Midland Co.		15,999		705,716
Lorillard, Inc.		8,509		518,794
Philip Morris International, Inc.		37,488		3,160,613
Reynolds American, Inc.		7,602		458,781
				6,826,743
Airlines — 0.3%
Delta Air Lines, Inc.		20,400		789,888
Southwest Airlines Co.		16,417		440,961
				1,230,849
Apparel — 0.7%
Coach, Inc.		6,977		238,544
Michael Kors Holdings Ltd.		4,300		381,195
NIKE, Inc., Class B		17,546		1,360,692
Ralph Lauren Corp.		1,428		229,465
Under Armour, Inc., Class A*		3,900		232,011
VF Corp.		8,432		531,216
				2,973,123
Auto Manufacturers — 0.8%
Ford Motor Co.		94,067		1,621,715
General Motors Co.		31,400		1,139,820
PACCAR, Inc.		8,544		536,820
				3,298,355
Auto Parts & Equipment — 0.4%
BorgWarner, Inc.		5,400		352,026
Delphi Automotive PLC		6,600		453,684
Johnson Controls, Inc.		15,711		784,450
The Goodyear Tire & Rubber Co.		5,606		155,735
				1,745,895
Banks — 7.2%
Bank of America Corp.		250,835		3,855,334
BB&T Corp.		17,099		674,214
Capital One Financial Corp.		13,841		1,143,267
Citigroup, Inc.		72,581		3,418,565
Comerica, Inc.		4,344		217,895
Fifth Third Bancorp		20,946		447,197

	Number of Shares		Value†
Banks — (continued)
Huntington Bancshares, Inc.		19,965	$	190,466
JPMorgan Chase & Co.		90,664		5,224,060
KeyCorp		21,599		309,514
M&T Bank Corp.		3,108		385,547
Morgan Stanley		32,963		1,065,694
Northern Trust Corp.		5,247		336,910
Regions Financial Corp.		32,894		349,334
State Street Corp.		10,447		702,665
SunTrust Banks, Inc.		12,888		516,293
The Bank of New York Mellon Corp.		27,280		1,022,454
The Goldman Sachs Group, Inc.		9,943		1,664,856
The PNC Financial Services Group, Inc.		12,883		1,147,231
U.S. Bancorp		43,156		1,869,518
Wells Fargo & Co.		114,837		6,035,833
Zions Bancorporation		4,804		141,574
				30,718,421
Beverages — 2.2%
Brown-Forman Corp., Class B		3,793		357,187
Coca-Cola Enterprises, Inc.		5,928		283,240
Constellation Brands, Inc., Class A*		3,923		345,734
Dr. Pepper Snapple Group, Inc.		5,000		292,900
Keurig Green Mountain, Inc.		3,100		386,291
Molson Coors Brewing Co., Class B		3,938		292,042
Monster Beverage Corp.*		3,100		220,193
PepsiCo, Inc.		36,361		3,248,492
The Coca-Cola Co.		90,170		3,819,601
				9,245,680
Biotechnology — 2.5%
Alexion Pharmaceuticals, Inc.*		4,700		734,375
Amgen, Inc.		18,145		2,147,824
Biogen Idec, Inc.*		5,633		1,776,141
Celgene Corp.*		19,056		1,636,529
Gilead Sciences, Inc.*		36,898		3,059,213
Regeneron Pharmaceuticals, Inc.*		1,900		536,693
Vertex Pharmaceuticals, Inc.*		5,500		520,740
				10,411,515
Building Materials — 0.1%
Masco Corp.		9,077		201,509
Vulcan Materials Co.		3,041		193,864
				395,373
Chemicals — 2.5%
Air Products & Chemicals, Inc.		5,021		645,801
Airgas, Inc.		1,600		174,256
CF Industries Holdings, Inc.		1,200		288,636
E.I. du Pont de Nemours & Co.		22,123		1,447,729
Eastman Chemical Co.		3,682		321,623
Ecolab, Inc.		6,533		727,384
FMC Corp.		3,100		220,689
International Flavors & Fragrances, Inc.		1,875		195,525
LyondellBasell Industries N.V., Class A		9,900		966,735
Monsanto Co.		12,637		1,576,339
PPG Industries, Inc.		3,310		695,597

91

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Chemicals — (continued)
Praxair, Inc.		7,126	$	946,618
Sigma-Aldrich Corp.		2,722		276,229
The Dow Chemical Co.		29,079		1,496,405
The Mosaic Co.		7,600		375,820
The Sherwin-Williams Co.		2,034		420,855
				10,776,241
Coal — 0.1%
CONSOL Energy, Inc.		5,776		266,100
Peabody Energy Corp.		6,212		101,566
				367,666
Commercial Services — 1.6%
Allegion PLC		2,266		128,437
Alliance Data Systems Corp.*		1,200		337,500
Automatic Data Processing, Inc.		11,443		907,201
Cintas Corp.		2,455		155,991
Equifax, Inc.		3,034		220,086
H&R Block, Inc.		6,666		223,444
Iron Mountain, Inc.		4,381		155,306
MasterCard, Inc., Class A		23,900		1,755,933
McGraw Hill Financial, Inc.		6,486		538,533
Moody’s Corp.		4,473		392,103
Paychex, Inc.		7,775		323,129
Pentair PLC		4,519		325,910
Quanta Services, Inc.*		4,900		169,442
Robert Half International, Inc.		3,207		153,102
The ADT Corp.		4,134		144,442
The Western Union Co.		13,778		238,911
Total System Services, Inc.		4,377		137,482
Tyco International Ltd.		10,800		492,480
				6,799,432
Computers — 5.7%
Accenture PLC, Class A		15,000		1,212,600
Apple, Inc.		144,082		13,389,540
Cognizant Technology Solutions Corp., Class A*		14,504		709,391
Computer Sciences Corp.		3,357		212,162
EMC Corp.		48,248		1,270,852
Hewlett-Packard Co.		44,683		1,504,923
International Business Machines Corp.		22,658		4,107,216
NetApp, Inc.		8,121		296,579
SanDisk Corp.		5,397		563,609
Seagate Technology PLC		7,700		437,514
Teradata Corp.*		3,516		141,343
Western Digital Corp.		4,900		452,270
				24,297,999
Cosmetics & Personal Care — 1.7%
Avon Products, Inc.		10,950		159,980
Colgate-Palmolive Co.		20,670		1,409,281
The Estee Lauder Cos., Inc., Class A		6,074		451,055
The Procter & Gamble Co.		64,594		5,076,442
				7,096,758

	Number of Shares		Value†
Distribution & Wholesale — 0.3%
Fastenal Co.		6,700	$	331,583
Fossil Group, Inc.*		1,200		125,424
Genuine Parts Co.		3,805		334,079
W.W. Grainger, Inc.		1,472		374,285
				1,165,371
Diversified Financial Services — 2.6%
Affiliated Managers Group, Inc.*		1,300		267,020
American Express Co.		21,780		2,066,269
Ameriprise Financial, Inc.		4,446		533,520
BlackRock, Inc.		2,999		958,480
CME Group, Inc.		7,560		536,382
Discover Financial Services		11,378		705,209
E*TRADE Financial Corp.*		6,481		137,786
Franklin Resources, Inc.		9,556		552,719
IntercontinentalExchange Group, Inc.		2,770		523,253
Invesco Ltd.		10,367		391,354
Legg Mason, Inc.		2,261		116,012
Navient Corp.		10,434		184,786
T. Rowe Price Group, Inc.		6,281		530,179
The Charles Schwab Corp.		27,669		745,126
The NASDAQ OMX Group, Inc.		3,100		119,722
Visa, Inc., Class A		11,964		2,520,935
				10,888,752
Diversified Operations — 0.3%
Eaton Corp. PLC		11,306		872,597
Leucadia National Corp.		7,260		190,357
				1,062,954
Electric — 2.8%
AES Corp.		14,444		224,604
Ameren Corp.		5,798		237,022
American Electric Power Co., Inc.		11,757		655,688
CMS Energy Corp.		6,707		208,923
Consolidated Edison, Inc.		7,234		417,691
Dominion Resources, Inc.		13,909		994,772
DTE Energy Co.		4,092		318,644
Duke Energy Corp.		16,859		1,250,769
Edison International		7,674		445,936
Entergy Corp.		4,447		365,054
Exelon Corp.		20,310		740,909
FirstEnergy Corp.		9,956		345,672
Integrys Energy Group, Inc.		1,995		141,905
NextEra Energy, Inc.		10,285		1,054,007
Northeast Utilities		7,517		355,329
NRG Energy, Inc.		7,800		290,160
Pepco Holdings, Inc.		5,540		152,239
PG&E Corp.		10,650		511,413
Pinnacle West Capital Corp.		2,569		148,591
PPL Corp.		15,098		536,432
Public Service Enterprise Group, Inc.		12,349		503,716
SCANA Corp.		3,400		182,954
TECO Energy, Inc.		4,523		83,585
The Southern Co.		21,111		958,017
Wisconsin Energy Corp.		5,200		243,984
Xcel Energy, Inc.		11,630		374,835
				11,742,851

92

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electrical Components & Equipment — 0.3%
AMETEK, Inc.		5,800	$	303,224
Emerson Electric Co.		16,876		1,119,891
				1,423,115
Electronics — 1.2%
Agilent Technologies, Inc.		7,845		450,617
Amphenol Corp., Class A		3,700		356,458
FLIR Systems, Inc.		3,600		125,028
Garmin Ltd.		3,200		194,880
Honeywell International, Inc.		18,708		1,738,909
Jabil Circuit, Inc.		4,292		89,703
PerkinElmer, Inc.		3,016		141,269
TE Connectivity Ltd.		10,000		618,400
Thermo Fisher Scientific, Inc.		9,482		1,118,876
Waters Corp.*		2,158		225,381
				5,059,521
Engineering & Construction — 0.1%
Fluor Corp.		3,870		297,603
Jacobs Engineering Group, Inc.*		2,983		158,934
				456,537
Environmental Control — 0.2%
Republic Services, Inc.		6,314		239,743
Stericycle, Inc.*		2,000		236,840
Waste Management, Inc.		10,500		469,665
				946,248
Food — 1.6%
Campbell Soup Co.		4,516		206,878
ConAgra Foods, Inc.		9,902		293,891
General Mills, Inc.		14,510		762,356
Hormel Foods Corp.		3,500		172,725
Kellogg Co.		6,066		398,536
Kraft Foods Group, Inc.		14,254		854,527
McCormick & Co., Inc.		3,208		229,661
Mondelez International, Inc., Class A		40,663		1,529,336
Safeway, Inc.		5,317		182,586
Sysco Corp.		14,252		533,737
The Hershey Co.		3,487		339,529
The J.M. Smucker Co.		2,534		270,048
The Kroger Co.		12,445		615,156
Tyson Foods, Inc., Class A		6,649		249,604
Whole Foods Market, Inc.		8,986		347,129
				6,985,699
Forest Products & Paper — 0.2%
International Paper Co.		10,467		528,269
MeadWestvaco Corp.		3,999		176,996
				705,265
Gas — 0.3%
AGL Resources, Inc.		2,600		143,078
CenterPoint Energy, Inc.		10,322		263,624
NiSource, Inc.		7,865		309,409
Sempra Energy		5,398		565,224
				1,281,335

	Number of Shares		Value†
Hand & Machine Tools — 0.1%
Snap-On, Inc.		1,328	$	157,394
Stanley Black & Decker, Inc.		3,640		319,665
				477,059
Healthcare Products — 1.8%
Baxter International, Inc.		12,875		930,862
Becton Dickinson & Co.		4,675		553,053
Boston Scientific Corp.*		31,948		407,976
C.R. Bard, Inc.		1,842		263,424
CareFusion Corp.*		5,241		232,438
Covidien PLC		10,900		982,962
DENTSPLY International, Inc.		3,200		151,520
Edwards Lifesciences Corp.*		2,500		214,600
Hospira, Inc.*		3,912		200,959
Intuitive Surgical, Inc.*		907		373,503
Medtronic, Inc.		23,973		1,528,518
Patterson Cos., Inc.		1,974		77,993
St. Jude Medical, Inc.		6,830		472,978
Stryker Corp.		6,981		588,638
Varian Medical Systems, Inc.*		2,657		220,903
Zimmer Holdings, Inc.		4,029		418,452
				7,618,779
Healthcare Services — 1.2%
Aetna, Inc.		8,493		688,613
Cigna Corp.		6,594		606,450
DaVita HealthCare Partners, Inc.*		4,298		310,831
Humana, Inc.		3,710		473,841
Laboratory Corp. of America Holdings*		2,177		222,925
Quest Diagnostics, Inc.		3,387		198,783
Tenet Healthcare Corp.*		2,343		109,980
UnitedHealth Group, Inc.		23,641		1,932,652
WellPoint, Inc.		6,695		720,449
				5,264,524
Home Builders — 0.1%
D.R. Horton, Inc.		6,376		156,722
Lennar Corp., Class A		4,036		169,431
PulteGroup, Inc.		8,034		161,966
				488,119
Home Furnishings — 0.1%
Harman International Industries, Inc.		1,738		186,713
Whirlpool Corp.		1,969		274,124
				460,837
Household Products & Wares — 0.3%
Avery Dennison Corp.		2,183		111,879
Kimberly-Clark Corp.		8,987		999,534
The Clorox Co.		2,997		273,926
				1,385,339
Housewares — 0.0%
Newell Rubbermaid, Inc.		6,317		195,764

93

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Insurance — 4.1%
ACE Ltd.		8,100	$	839,970
Aflac, Inc.		11,100		690,975
American International Group, Inc.		34,585		1,887,649
Aon PLC		7,144		643,603
Assurant, Inc.		1,673		109,665
Berkshire Hathaway, Inc., Class B*		43,150		5,461,064
Cincinnati Financial Corp.		3,692		177,364
Genworth Financial, Inc., Class A*		11,369		197,821
Hartford Financial Services Group, Inc.		10,557		378,046
Lincoln National Corp.		6,173		317,539
Loews Corp.		7,625		335,576
Marsh & McLennan Cos., Inc.		13,109		679,308
MetLife, Inc.		26,885		1,493,731
Principal Financial Group, Inc.		6,465		326,353
Prudential Financial, Inc.		11,030		979,133
The Allstate Corp.		10,276		603,407
The Chubb Corp.		5,951		548,504
The Progressive Corp.		12,956		328,564
The Travelers Cos., Inc.		8,431		793,104
Torchmark Corp.		2,235		183,091
Unum Group		6,076		211,202
XL Group PLC		6,549		214,349
				17,400,018
Internet — 4.5%
Amazon.com, Inc.*		8,875		2,882,423
eBay, Inc.*		27,228		1,363,034
Expedia, Inc.		2,494		196,427
F5 Networks, Inc.*		1,800		200,592
Facebook, Inc., Class A*		41,200		2,772,348
Google, Inc., Class A*		6,725		3,931,906
Google, Inc., Class C*		6,725		3,868,758
Netflix, Inc.*		1,400		616,840
priceline.com, Inc.*		1,227		1,476,081
Symantec Corp.		16,638		381,010
TripAdvisor, Inc.*		2,594		281,864
VeriSign, Inc.*		3,009		146,869
Yahoo!, Inc.*		22,617		794,535
				18,912,687
Iron & Steel — 0.1%
Allegheny Technologies, Inc.		2,278		102,738
Nucor Corp.		7,735		380,949
United States Steel Corp.		3,203		83,406
				567,093
Leisure Time — 0.2%
Carnival Corp.		10,345		389,489
Harley-Davidson, Inc.		5,228		365,176
				754,665
Lodging — 0.3%
Marriott International, Inc., Class A		5,185		332,358
Starwood Hotels & Resorts Worldwide, Inc.		4,752		384,057
Wyndham Worldwide Corp.		3,160		239,275
Wynn Resorts Ltd.		1,930		400,591
				1,356,281

	Number of Shares		Value†
Machinery — Construction & Mining — 0.4%
Caterpillar, Inc.		14,828	$	1,611,359
Joy Global, Inc.		2,300		141,634
				1,752,993
Machinery — Diversified — 0.6%
Cummins, Inc.		4,174		644,007
Deere & Co.		8,732		790,683
Flowserve Corp.		3,300		245,355
Rockwell Automation, Inc.		3,271		409,398
Roper Industries, Inc.		2,400		350,424
Xylem, Inc.		4,154		162,338
				2,602,205
Media — 3.5%
Cablevision Systems Corp., Class A		5,000		88,250
CBS Corp., Class B		12,525		778,304
Comcast Corp., Class A		62,034		3,329,985
DIRECTV*		11,319		962,228
Discovery Communications, Inc., Class A*		5,300		393,684
Gannett Co., Inc.		5,374		168,260
Graham Holdings Co.		63		45,241
News Corp., Class A*		12,215		219,137
Nielsen Holdings NV		6,700		324,347
Scripps Networks Interactive, Inc., Class A		2,556		207,394
The Walt Disney Co.		38,576		3,307,506
Time Warner Cable, Inc.		6,696		986,321
Time Warner, Inc.		21,104		1,482,556
Twenty-First Century Fox, Inc., Class A		46,260		1,626,039
Viacom, Inc., Class B		9,281		804,941
				14,724,193
Metal Fabricate/Hardware — 0.2%
Precision Castparts Corp.		3,525		889,710
Mining — 0.4%
Alcoa, Inc.		25,948		386,366
Freeport-McMoRan Copper & Gold, Inc.		25,196		919,654
Newmont Mining Corp.		12,383		315,023
				1,621,043
Miscellaneous Manufacturing — 2.9%
3M Co.		14,880		2,131,411
Danaher Corp.		14,368		1,131,193
Dover Corp.		4,105		373,350
General Electric Co.		239,425		6,292,089
Illinois Tool Works, Inc.		9,019		789,704
Ingersoll-Rand PLC		5,900		368,809
Leggett & Platt, Inc.		3,354		114,975
Pall Corp.		2,645		225,856
Parker Hannifin Corp.		3,581		450,239
Textron, Inc.		6,876		263,282
				12,140,908
Office & Business Equipment — 0.1%
Pitney Bowes, Inc.		4,261		117,689
Xerox Corp.		25,455		316,660
				434,349

94

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Oil & Gas — 8.0%
Anadarko Petroleum Corp.		11,959	$	1,309,152
Apache Corp.		9,223		928,018
Cabot Oil & Gas Corp.		10,088		344,404
Chesapeake Energy Corp.		12,410		385,703
Chevron Corp.		45,470		5,936,109
Cimarex Energy Co.		2,100		301,266
ConocoPhillips		29,280		2,510,174
Denbury Resources, Inc.		8,500		156,910
Devon Energy Corp.		9,229		732,783
Diamond Offshore Drilling, Inc.		1,600		79,408
Ensco PLC ADR,Class A		5,800		322,306
EOG Resources, Inc.		13,116		1,532,736
EQT Corp.		3,600		384,840
Exxon Mobil Corp.		102,565		10,326,244
Helmerich & Payne, Inc.		2,700		313,497
Hess Corp.		6,297		622,710
Marathon Oil Corp.		15,951		636,764
Marathon Petroleum Corp.		6,825		532,828
Murphy Oil Corp.		3,917		260,402
Newfield Exploration Co.*		2,900		128,180
Noble Energy, Inc.		8,538		661,353
Occidental Petroleum Corp.		18,958		1,945,660
Phillips 66		13,540		1,089,022
Pioneer Natural Resources Co.		3,400		781,354
QEP Resources, Inc.		4,590		158,355
Range Resources Corp.		3,923		341,105
Southwestern Energy Co.*		8,490		386,210
Tesoro Corp.		3,094		181,525
Valero Energy Corp.		12,840		643,284
				33,932,302
Oil & Gas Services — 2.0%
Baker Hughes, Inc.		10,528		783,809
Cameron International Corp.*		5,070		343,290
FMC Technologies, Inc.*		5,700		348,099
Halliburton Co.		20,269		1,439,302
Nabors Industries Ltd.		5,908		173,518
National Oilwell Varco, Inc.		10,423		858,334
Noble Corp. PLC		6,400		214,784
Rowan Cos. PLC, Class A		3,203		102,272
Schlumberger Ltd.		31,259		3,686,999
Transocean Ltd.		8,300		373,749
				8,324,156
Packaging and Containers — 0.1%
Ball Corp.		3,226		202,206
Bemis Co., Inc.		2,549		103,642
Owens-Illinois, Inc.*		4,000		138,560
Sealed Air Corp.		5,033		171,978
				616,386
Pharmaceuticals — 7.2%
Abbott Laboratories		35,896		1,468,146
AbbVie, Inc.		37,996		2,144,494
Actavis PLC		4,243		946,401
Allergan, Inc.		7,116		1,204,170

	Number of Shares		Value†
Pharmaceuticals — (continued)
AmerisourceBergen Corp.		5,500	$	399,630
Bristol-Myers Squibb Co.		39,597		1,920,851
Cardinal Health, Inc.		8,182		560,958
Eli Lilly & Co.		23,654		1,470,569
Express Scripts Holding Co.*		18,564		1,287,042
Forest Laboratories, Inc.*		5,562		550,638
Johnson & Johnson		67,541		7,066,140
McKesson Corp.		5,525		1,028,810
Mead Johnson Nutrition Co.		4,768		444,235
Merck & Co., Inc.		69,913		4,044,467
Mylan, Inc.*		9,056		466,927
Perrigo Co. PLC		3,100		451,856
Pfizer, Inc.		152,205		4,517,444
Zoetis, Inc.		12,107		390,693
				30,363,471
Pipelines — 0.6%
Kinder Morgan, Inc.		16,236		588,718
ONEOK, Inc.		4,800		326,784
Spectra Energy Corp.		16,384		695,992
The Williams Cos., Inc.		17,734		1,032,296
				2,643,790
Real Estate — 0.1%
CBRE Group, Inc., Class A*		7,201		230,720
Retail — 5.7%
AutoNation, Inc.*		1,719		102,590
AutoZone, Inc.*		741		397,354
Bed Bath & Beyond, Inc.*		5,066		290,687
Best Buy Co., Inc.		6,468		200,573
CarMax, Inc.*		5,300		275,653
Chipotle Mexican Grill, Inc.*		700		414,757
Costco Wholesale Corp.		10,377		1,195,015
CVS Caremark Corp.		27,967		2,107,873
Darden Restaurants, Inc.		2,940		136,034
Dollar General Corp.*		7,000		401,520
Dollar Tree, Inc.*		4,900		266,854
Family Dollar Stores, Inc.		2,233		147,691
GameStop Corp., Class A		2,664		107,812
Kohl’s Corp.		4,501		237,113
L Brands, Inc.		6,060		355,479
Lowe’s Cos., Inc.		24,040		1,153,679
Macy’s, Inc.		8,727		506,340
McDonald’s Corp.		23,678		2,385,322
Nordstrom, Inc.		3,337		226,682
O’Reilly Automotive, Inc.*		2,500		376,500
PetSmart, Inc.		2,600		155,480
PVH Corp.		1,900		221,540
Ross Stores, Inc.		5,200		343,876
Staples, Inc.		15,637		169,505
Starbucks Corp.		17,844		1,380,769
Target Corp.		15,132		876,899
The Gap, Inc.		6,182		256,986
The Home Depot, Inc.		32,604		2,639,620
Tiffany & Co.		2,764		277,091

95

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — (continued)
TJX Cos., Inc.		17,018	$	904,507
Tractor Supply Co.		3,300		199,320
Urban Outfitters, Inc.*		2,500		84,650
Wal-Mart Stores, Inc.		38,447		2,886,216
Walgreen Co.		20,779		1,540,347
Yum! Brands, Inc.		10,669		866,323
				24,088,657
Savings & Loans — 0.1%
Hudson City Bancorp, Inc.		11,257		110,656
People’s United Financial, Inc.		7,700		116,809
				227,465
Semiconductors — 3.0%
Altera Corp.		7,265		252,531
Analog Devices, Inc.		7,676		415,041
Applied Materials, Inc.		29,321		661,189
Avago Technologies Ltd.		6,000		432,420
Broadcom Corp., Class A		12,908		479,145
First Solar, Inc.*		1,800		127,908
Intel Corp.		118,775		3,670,148
KLA-Tencor Corp.		4,127		299,785
Lam Research Corp.		3,859		260,791
Linear Technology Corp.		5,541		260,815
Microchip Technology, Inc.		5,018		244,929
Micron Technology, Inc.*		24,886		819,994
NVIDIA Corp.		13,554		251,291
QUALCOMM, Inc.		40,199		3,183,761
Texas Instruments, Inc.		25,593		1,223,089
Xilinx, Inc.		6,364		301,081
				12,883,918
Software — 3.7%
Adobe Systems, Inc.*		11,005		796,322
Akamai Technologies, Inc.*		4,160		254,010
Autodesk, Inc.*		5,681		320,295
CA, Inc.		7,639		219,545
Cerner Corp.*		7,000		361,060
Citrix Systems, Inc.*		3,791		237,127
Electronic Arts, Inc.*		7,730		277,275
Fidelity National Information Services, Inc.		7,059		386,410
Fiserv, Inc.*		5,814		350,700
Intuit, Inc.		6,892		555,013
Microsoft Corp.		179,515		7,485,775
Oracle Corp.		82,217		3,332,255
Red Hat, Inc.*		4,600		254,242
Salesforce.com, Inc.*		13,200		766,656
The Dun & Bradstreet Corp.		900		99,180
				15,695,865
Telecommunications — 3.6%
AT&T, Inc.		123,843		4,379,089
CenturyLink, Inc.		13,926		504,121
Cisco Systems, Inc.		122,680		3,048,598
Corning, Inc.		31,115		682,974
Crown Castle International Corp.		8,000		594,080

	Number of Shares		Value†
Telecommunications — (continued)
Frontier Communications Corp.		21,472	$	125,397
Harris Corp.		2,600		196,950
Juniper Networks, Inc.*		10,971		269,228
Motorola Solutions, Inc.		5,246		349,226
Verizon Communications, Inc.		98,876		4,838,003
Windstream Holdings, Inc.		13,351		132,976
				15,120,642
Textiles — 0.1%
Mohawk Industries, Inc.*		1,500		207,510
Toys, Games & Hobbies — 0.1%
Hasbro, Inc.		2,612		138,567
Mattel, Inc.		8,281		322,710
				461,277
Transportation — 1.7%
C.H. Robinson Worldwide, Inc.		3,739		238,511
CSX Corp.		24,066		741,473
Expeditors International of Washington, Inc.		4,973		219,608
FedEx Corp.		6,666		1,009,099
Kansas City Southern		2,700		290,277
Norfolk Southern Corp.		7,552		778,083
Ryder System, Inc.		1,125		99,101
Union Pacific Corp.		21,820		2,176,545
United Parcel Service, Inc., Class B		16,774		1,722,019
				7,274,716
TOTAL COMMON STOCKS (Cost $243,434,405)				407,757,588
REAL ESTATE INVESTMENT TRUSTS — 2.0%
Apartments — 0.3%
Apartment Investment & Management Co., Class A		3,662		118,173
AvalonBay Communities, Inc.		2,892		411,213
Equity Residential		7,892		497,196
Essex Property Trust, Inc.		1,500		277,365
				1,303,947
Diversified — 0.5%
American Tower Corp.		9,559		860,119
Plum Creek Timber Co., Inc.		4,547		205,070
Vornado Realty Trust		4,087		436,205
Weyerhaeuser Co.		13,808		456,907
				1,958,301
Healthcare — 0.3%
HCP, Inc.		10,840		448,559
Health Care REIT, Inc.		7,100		444,957
Ventas, Inc.		7,253		464,917
				1,358,433
Hotels & Resorts — 0.1%
Host Hotels & Resorts, Inc.		17,676		389,049

96

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Industrial — 0.1%
Prologis, Inc.		11,899	$	488,930
Office Property — 0.1%
Boston Properties, Inc.		3,742		442,229
Regional Malls — 0.4%
General Growth Properties, Inc.		12,100		285,076
Simon Property Group, Inc.		7,528		1,251,756
The Macerich Co.		3,400		226,950
				1,763,782
Storage & Warehousing — 0.1%
Public Storage		3,516		602,467
Strip Centers — 0.1%
Kimco Realty Corp.		9,564		219,781
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $6,136,192)				8,526,919
	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — 0.1%
U S Treasury Bills 0.025%, 07/17/14+	$	185		184,999
0.010%, 08/07/14+		200		199,996
TOTAL U.S. TREASURY OBLIGATIONS (Cost $384,996)				384,995
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.7%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $7,267,667)		7,267,667		7,267,667
TOTAL INVESTMENTS — 100.0% (Cost $257,223,260)			$	423,937,169

† See Security Valuation Note.

* Non-income producing security.

+ Collateral pledged for derivatives.

ADR — American Depository Receipt.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	407,757,588	$	407,757,588	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		8,526,919		8,526,919		—		—
U.S. TREASURY OBLIGATIONS		384,995		—		384,995		—
SHORT-TERM INVESTMENTS		7,267,667		7,267,667		—		—
TOTAL INVESTMENTS	$	423,937,169	$	423,552,174	$	384,995	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

97

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Mid Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 97.9%
Apparel — 2.6%
Burberry Group PLC		57,729	$	1,465,158
Carter’s, Inc.		24,453		1,685,545
				3,150,703
Auto Parts & Equipment — 1.1%
Allison Transmission Holdings, Inc.		43,700		1,359,070
Banks — 7.9%
First Republic Bank		48,000		2,639,520
Northern Trust Corp.		49,600		3,184,816
Signature Bank*		22,860		2,884,475
UMB Financial Corp.		16,800		1,064,952
				9,773,763
Beverages — 1.2%
Brown-Forman Corp., Class B		15,100		1,421,967
Biotechnology — 1.6%
Alkermes PLC*		25,702		1,293,582
Incyte Corp. Ltd.*		12,296		693,986
				1,987,568
Building Materials — 1.9%
Fortune Brands Home & Security, Inc.		60,142		2,401,470
Commercial Services — 4.3%
Alliance Data Systems Corp.*		3,508		986,625
CoStar Group, Inc.*		7,046		1,114,466
Vantiv, Inc., Class A*		40,300		1,354,886
Verisk Analytics, Inc., Class A*		30,800		1,848,616
				5,304,593
Computers — 1.5%
Teradata Corp.*		45,000		1,809,000
Cosmetics & Personal Care — 1.0%
Coty, Inc., Class A		69,200		1,185,396
Distribution & Wholesale — 4.5%
Fastenal Co.		61,750		3,056,007
LKQ Corp.*		95,500		2,548,895
				5,604,902
Diversified Financial Services — 0.7%
Oaktree Capital Group LLC		16,500		824,835
Electronics — 2.4%
FLIR Systems, Inc.		39,400		1,368,362
Gentex Corp.		55,900		1,626,131
				2,994,493
Engineering & Construction — 1.0%
Jacobs Engineering Group, Inc.*		23,800		1,268,064
Environmental Control — 1.3%
Stericycle, Inc.*		13,795		1,633,604
Food — 1.8%
The Hain Celestial Group, Inc.*		25,488		2,261,805
Healthcare Products — 8.1%
Align Technology, Inc.*		30,589		1,714,208

	Number of Shares		Value†
Healthcare Products — (continued)
DENTSPLY International, Inc.		39,800	$	1,884,530
Henry Schein, Inc.*		15,700		1,863,119
Intuitive Surgical, Inc.*		4,500		1,853,100
Varian Medical Systems, Inc.*		32,800		2,726,992
				10,041,949
Healthcare Services — 2.3%
Acadia Healthcare Co., Inc.*		22,900		1,041,950
Humana, Inc.		13,713		1,751,424
				2,793,374
Household Products & Wares — 1.0%
The Scotts Miracle-Gro Co.		21,500		1,222,490
Internet — 5.9%
F5 Networks, Inc.*		18,900		2,106,216
HomeAway, Inc.*		31,222		1,087,150
Pandora Media, Inc.*		90,112		2,658,304
WebMD Health Corp.*		29,800		1,439,340
				7,291,010
Leisure Time — 2.6%
Norwegian Cruise Line Holdings Ltd.*		55,649		1,764,073
Sabre Corp.*		72,300		1,449,615
				3,213,688
Machinery — Construction & Mining — 1.4%
Joy Global, Inc.		28,600		1,761,188
Machinery — Diversified — 2.0%
Flowserve Corp.		32,512		2,417,267
Miscellaneous Manufacturing — 1.7%
Polypore International, Inc.*		43,900		2,095,347
Oil & Gas — 5.5%
Cabot Oil & Gas Corp.		44,366		1,514,655
Continental Resources, Inc.*		16,200		2,560,248
Oasis Petroleum, Inc.*		13,233		739,593
Southwestern Energy Co.*		42,200		1,919,678
				6,734,174
Oil & Gas Services — 1.2%
Dril-Quip, Inc.*		13,400		1,463,816
Pharmaceuticals — 5.4%
ACADIA Pharmaceuticals, Inc.*		22,734		513,561
BioMarin Pharmaceutical, Inc.*		21,467		1,335,462
Mead Johnson Nutrition Co.		29,800		2,776,466
Medivation, Inc.*		18,800		1,449,104
Zoetis, Inc.		19,353		624,521
				6,699,114
Retail — 12.7%
DSW, Inc., Class A		38,648		1,079,825
Dunkin’ Brands Group, Inc.		52,372		2,399,161
L Brands, Inc.		26,751		1,569,214
Nordstrom, Inc.		27,203		1,847,900
Panera Bread Co., Class A*		9,200		1,378,436

98

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Mid Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — (continued)
Ross Stores, Inc.		33,403	$	2,208,941
Tiffany & Co.		13,800		1,383,450
Ulta Salon Cosmetics & Fragrance, Inc.*		21,900		2,001,879
Urban Outfitters, Inc.*		55,091		1,865,381
				15,734,187
Semiconductors — 2.4%
Microchip Technology, Inc.		61,900		3,021,339
Software — 6.1%
Ansys, Inc.*		18,800		1,425,416
Electronic Arts, Inc.*		89,900		3,224,713
ServiceNow, Inc.*		22,580		1,399,057
Solera Holdings, Inc.		23,000		1,544,450
				7,593,636
Telecommunications — 0.6%
Aruba Networks, Inc.*		41,890		733,913
Toys, Games & Hobbies — 2.0%
Mattel, Inc.		63,664		2,480,986
Transportation — 2.2%
Expeditors International of Washington, Inc.		62,300		2,751,168
TOTAL COMMON STOCKS (Cost $114,165,238)				121,029,879
PURCHASED OPTIONS — 0.1%
Put Options — 0.1%
MDY US, $250.00, 07/19/14		237		11,850
MDY, $255.00, 07/19/14		237		23,700
NDX US, $3710.00 07/19/14		8		4,160
RUT US, $1150.00, 07/19/14		65		28,340
XLY, $64.00, 07/19/14		462		3,696
XLY, $65.00, 07/19/14		695		11,815
TOTAL PURCHASED OPTIONS (Cost $298,561)				83,561
SHORT-TERM INVESTMENTS — 2.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,444,242)		2,444,242		2,444,242
TOTAL INVESTMENTS — 100.0% (Cost $116,908,041)			$	123,557,682

† See Security Valuation Note.

* Non-income producing security.

LLC — Limited Liability Company.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
TOTAL COMMON STOCKS	$	121,029,879	$	121,029,879	$	—	$	—
PURCHASED OPTIONS		83,561		83,561		—		—
SHORT-TERM INVESTMENTS		2,444,242		2,444,242		—		—
TOTAL INVESTMENTS	$	123,557,682	$	123,557,682	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

99

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Mid Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 90.7%
Aerospace & Defense — 4.7%
General Dynamics Corp.		44,150	$	5,145,682
Spirit Aerosystems Holdings, Inc., Class A*		106,100		3,575,570
				8,721,252
Auto Parts & Equipment — 2.1%
Lear Corp.		20,200		1,804,264
TRW Automotive Holdings Corp.*		22,800		2,041,056
				3,845,320
Banks — 7.2%
BB&T Corp.		52,200		2,058,246
Comerica, Inc.		52,700		2,643,432
Huntington Bancshares, Inc.		268,100		2,557,674
M&T Bank Corp.		23,100		2,865,555
State Street Corp.		47,600		3,201,576
				13,326,483
Chemicals — 2.6%
Ashland, Inc.		44,000		4,784,560
Commercial Services — 9.1%
Hertz Global Holdings, Inc.*		156,000		4,372,680
The ADT Corp.		183,000		6,394,020
The Western Union Co.		199,100		3,452,394
Tyco International Ltd.		58,300		2,658,480
				16,877,574
Computers — 3.0%
Cadence Design Systems, Inc.*		125,700		2,198,493
Teradata Corp.*		82,500		3,316,500
				5,514,993
Cosmetics & Personal Care — 1.2%
Elizabeth Arden, Inc.*		106,900		2,289,798
Electric — 5.9%
AES Corp.		288,100		4,479,955
Edison International		64,800		3,765,528
Pinnacle West Capital Corp.		45,900		2,654,856
				10,900,339
Electronics — 2.9%
Dolby Laboratories, Inc., Class A*		41,700		1,801,440
Flextronics International Ltd.*		319,400		3,535,758
				5,337,198
Engineering & Construction — 1.2%
KBR, Inc.		94,500		2,253,825
Environmental Control — 3.2%
Covanta Holding Corp.		186,400		3,841,704
Republic Services, Inc.		57,000		2,164,290
				6,005,994
Food — 0.9%
Safeway, Inc.		47,300		1,624,282
Gas — 1.9%
CenterPoint Energy, Inc.		138,900		3,547,506

	Number of Shares		Value†
Hand & Machine Tools — 1.0%
Regal-Beloit Corp.		24,700	$	1,940,432
Healthcare Products — 3.0%
Covidien PLC		25,000		2,254,500
Zimmer Holdings, Inc.		32,100		3,333,906
				5,588,406
Home Furnishings — 1.0%
Select Comfort Corp.*		91,400		1,888,324
Household Products & Wares — 0.3%
Avery Dennison Corp.		11,700		599,625
Internet — 1.6%
Symantec Corp.		125,600		2,876,240
Miscellaneous Manufacturing — 3.9%
Textron, Inc.		90,900		3,480,561
Valmont Industries, Inc.		24,400		3,707,580
				7,188,141
Oil & Gas — 5.2%
Cabot Oil & Gas Corp.		53,500		1,826,490
Devon Energy Corp.		66,600		5,288,040
Energy Transfer Partners, LP		14,775		856,507
Southwestern Energy Co.*		36,400		1,655,836
				9,626,873
Oil & Gas Services — 2.0%
Cameron International Corp.*		54,700		3,703,737
Pharmaceuticals — 2.4%
Cardinal Health, Inc.		25,400		1,741,424
Omnicare, Inc.		40,300		2,682,771
				4,424,195
Retail — 13.0%
Bed Bath & Beyond, Inc.*		38,600		2,214,868
Best Buy Co., Inc.		132,200		4,099,522
CVS Caremark Corp.		50,800		3,828,796
Darden Restaurants, Inc.		73,100		3,382,337
Express, Inc.*		177,400		3,021,122
Kohl’s Corp.		64,800		3,413,664
Office Depot, Inc.*		714,800		4,067,212
				24,027,521
Savings & Loans — 2.5%
BankUnited, Inc.		86,700		2,902,716
People’s United Financial, Inc.		115,900		1,758,203
				4,660,919
Semiconductors — 2.6%
Skyworks Solutions, Inc.		102,300		4,804,008
Software — 4.3%
Check Point Software Technologies Ltd.*		49,200		3,297,876
Nuance Communications, Inc.*		247,788		4,650,981
				7,948,857

100

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Mid Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Telecommunications — 2.0%
Amdocs Ltd.		79,500	$	3,683,235
TOTAL COMMON STOCKS (Cost $130,283,892)				167,989,637
REAL ESTATE INVESTMENT TRUSTS — 5.6%
Building & Real Estate — 3.1%
Starwood Property Trust, Inc.		165,900		3,943,443
Starwood Waypoint Residential Trust*		63,720		1,670,101
				5,613,544
Diversified — 2.5%
Corrections Corporation of America		142,317		4,675,114
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $10,125,802)				10,288,658
SHORT-TERM INVESTMENTS — 3.7%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $6,817,201)		6,817,201		6,817,201
TOTAL INVESTMENTS — 100.0% (Cost $147,226,895)			$	185,095,496

† See Security Valuation Note.

* Non-income producing security.

LP — Limited Partnership.

PLC — Public Limited Company.

Country Weightings as of 06/30/2014††
United States	94	%
Israel	2
Singapore	2
Bermuda	1
Ireland	1
Total	100	%

†† % of total investments as of June 30, 2014

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	167,989,637	$	167,989,637	$	—	$	—
TOTAL REAL ESTATE INVESTMENT TRUSTS		10,288,658		10,288,658		—		—
SHORT-TERM INVESTMENTS		6,817,201		6,817,201		—		—
TOTAL INVESTMENTS	$	185,095,496	$	185,095,496	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

101

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Mid Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — 91.5%
Aerospace & Defense — 2.7%
BAE Systems PLC		85,888	$	636,311
Exelis, Inc.		30,504		517,958
General Dynamics Corp.		3,715		432,983
Northrop Grumman Corp.		1,642		196,433
Rockwell Collins, Inc.		4,338		338,971
				2,122,656
Airlines — 0.4%
Southwest Airlines Co.		12,857		345,339
Apparel — 0.2%
Coach, Inc.		4,350		148,727
Auto Parts & Equipment — 0.3%
Autoliv, Inc.		1,856		197,812
Banks — 11.2%
Bank of Hawaii Corp.		2,790		163,745
BOK Financial Corp.		5,801		386,347
Comerica, Inc.		8,621		432,429
Commerce Bancshares, Inc.		22,431		1,043,041
Cullen/Frost Bankers, Inc.		7,985		634,169
KeyCorp		15,130		216,813
M&T Bank Corp.		8,441		1,047,106
Northern Trust Corp.		33,744		2,166,702
State Street Corp.		7,503		504,652
SunTrust Banks, Inc.		14,425		577,866
The PNC Financial Services Group, Inc.		9,849		877,053
Westamerica Bancorporation		11,553		603,991
				8,653,914
Beverages — 0.2%
Dr. Pepper Snapple Group, Inc.		3,174		185,933
Biotechnology — 0.5%
Bio-Rad Laboratories, Inc., Class A*		3,196		382,593
Commercial Services — 2.9%
The ADT Corp.		44,638		1,559,652
Tyco International Ltd.		15,709		716,330
				2,275,982
Computers — 2.1%
SanDisk Corp.		4,787		499,906
Western Digital Corp.		12,413		1,145,720
				1,645,626
Diversified Financial Services — 1.3%
Franklin Resources, Inc.		8,206		474,635
LPL Financial Holdings, Inc.		8,478		421,696
Markit Ltd		3,084		83,206
				979,537
Electric — 10.4%
Ameren Corp.		12,017		491,255
Consolidated Edison, Inc.		15,888		917,373
Edison International		11,562		671,868
Great Plains Energy, Inc.		39,412		1,059,001
Northeast Utilities		8,512		402,362

	Number of Shares		Value†
Electric — (continued)
NorthWestern Corp.		7,810	$	407,604
PG&E Corp.		17,890		859,078
Portland General Electric Co.		7,660		265,572
The Southern Co.		15,001		680,745
Westar Energy, Inc.		34,974		1,335,657
Xcel Energy, Inc.		29,164		939,956
				8,030,471
Electronics — 3.1%
Agilent Technologies, Inc.		7,929		455,442
Koninklijke Philips N.V.		31,515		1,000,083
TE Connectivity Ltd.		8,443		522,115
Waters Corp.*		3,753		391,963
				2,369,603
Entertainment — 0.6%
International Game Technology		27,965		444,923
Environmental Control — 3.6%
Republic Services, Inc.		64,306		2,441,699
Waste Management, Inc.		7,970		356,498
				2,798,197
Food — 6.4%
Campbell Soup Co.		7,300		334,413
ConAgra Foods, Inc.		22,928		680,503
Danone S.A.		5,125		380,638
General Mills, Inc.		8,863		465,662
Kellogg Co.		5,919		388,878
Kraft Foods Group, Inc.		6,403		383,860
Mondelez International, Inc., Class A		10,782		405,511
Sysco Corp.		33,147		1,241,355
The Hillshire Brands Co.		2,850		177,555
The J.M. Smucker Co.		4,266		454,628
				4,913,003
Gas — 2.8%
Atmos Energy Corp.		10,601		566,093
The Laclede Group, Inc.		24,728		1,200,545
WGL Holdings, Inc.		9,924		427,724
				2,194,362
Hand & Machine Tools — 1.0%
Regal-Beloit Corp.		3,577		281,009
Stanley Black & Decker, Inc.		5,605		492,231
				773,240
Healthcare Products — 6.4%
Becton Dickinson & Co.		1,795		212,348
Boston Scientific Corp.*		35,220		449,759
CareFusion Corp.*		23,658		1,049,232
Hospira, Inc.*		14,934		767,160
Medtronic, Inc.		12,102		771,623
Patterson Cos., Inc.		13,286		524,930
STERIS Corp.		3,745		200,283
Stryker Corp.		6,827		575,653
Zimmer Holdings, Inc.		4,138		429,773
				4,980,761

102

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Mid Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Healthcare Services — 2.8%
Cigna Corp.		3,559	$	327,321
LifePoint Hospitals, Inc.*		13,059		810,964
Quest Diagnostics, Inc.		17,097		1,003,423
				2,141,708
Insurance — 7.7%
ACE Ltd.		7,530		780,861
Aflac, Inc.		5,795		360,739
Arthur J Gallagher & Co.		9,133		425,598
Brown & Brown, Inc.		12,652		388,543
HCC Insurance Holdings, Inc.		15,898		778,048
MetLife, Inc.		6,302		350,139
Reinsurance Group of America, Inc.		10,511		829,318
The Allstate Corp.		7,732		454,023
The Chubb Corp.		6,859		632,194
The Travelers Cos., Inc.		5,079		477,781
Unum Group		13,405		465,958
				5,943,202
Iron & Steel — 1.6%
Constellium N.V. Class A*		15,889		509,401
Nucor Corp.		14,144		696,592
				1,205,993
Leisure Time — 0.8%
Carnival Corp.		15,902		598,710
Mining — 0.4%
Newmont Mining Corp.		12,569		319,755
Miscellaneous Manufacturing — 0.6%
Textron, Inc.		11,393		436,238
Oil & Gas — 6.8%
Apache Corp.		11,469		1,154,011
Devon Energy Corp.		7,640		606,616
Imperial Oil Ltd.		38,573		2,032,670
Murphy Oil Corp.		5,573		370,493
Southwestern Energy Co.*		14,576		663,062
Williams Partners LP		7,449		404,406
				5,231,258
Oil & Gas Services — 0.5%
Cameron International Corp.*		5,695		385,608
Packaging and Containers — 1.2%
Bemis Co., Inc.		13,535		550,333
Sonoco Products Co.		9,064		398,182
				948,515
Pharmaceuticals — 0.7%
Cardinal Health, Inc.		8,458		579,881
Retail — 3.8%
Bed Bath & Beyond, Inc.*		3,796		217,814
CST Brands, Inc.		11,578		399,441
Family Dollar Stores, Inc.		4,335		286,717
Lowe’s Cos., Inc.		26,159		1,255,370

	Number of Shares		Value†
Retail — (continued)
Target Corp.		13,387	$	775,777
				2,935,119
Savings & Loans — 1.2%
Capitol Federal Financial, Inc.		15,373		186,936
People’s United Financial, Inc.		50,195		761,458
				948,394
Semiconductors — 5.2%
Applied Materials, Inc.		65,891		1,485,842
KLA-Tencor Corp.		9,830		714,051
Maxim Integrated Products, Inc.		7,611		257,328
Microchip Technology, Inc.		5,802		283,195
Micron Technology, Inc.*		6,845		225,543
MKS Instruments, Inc.		3,574		111,652
Teradyne, Inc.		46,528		911,949
				3,989,560
Telecommunications — 1.6%
CenturyLink, Inc.		13,443		486,637
Harris Corp.		2,804		212,403
Rogers Communications, Inc., Class B		13,181		530,427
				1,229,467
Transportation — 0.5%
Werner Enterprises, Inc.		16,189		429,170
TOTAL COMMON STOCKS (Cost $61,786,803)				70,765,257
REAL ESTATE INVESTMENT TRUSTS — 3.8%
Building & Real Estate — 1.1%
Annaly Capital Management, Inc.		56,740		648,538
Capstead Mortgage Corp.		14,618		192,227
				840,765
Diversified — 1.0%
Corrections Corporation of America		23,955		786,922
Office Property — 1.7%
Empire State Realty Trust, Inc.		23,811		392,881
Piedmont Office Realty Trust, Inc., Class A		47,170		893,400
				1,286,281
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,043,525)				2,913,968
EXCHANGE TRADED FUNDS — 2.5%
Investment Companies — 2.5%
Ishares Russell MidCap Value Index Fund (Cost $1,853,674)		26,808		1,946,529

103

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Mid Core Value Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 2.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,670,644)		1,670,644	$	1,670,644
TOTAL INVESTMENTS — 100.0% (Cost $68,354,646)			$	77,296,398

† See Security Valuation Note.

* Non-income producing security.

LP — Limited Partnership.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	70,765,257	$	70,765,257	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		2,913,968		2,913,968		—		—
EXCHANGE TRADED FUNDS		1,946,529		1,946,529		—		—
SHORT-TERM INVESTMENTS		1,670,644		1,670,644		—		—
TOTAL INVESTMENTS	$	77,296,398	$	77,296,398	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

104

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

SMID Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 98.2%
Aerospace & Defense — 1.3%
B/E Aerospace, Inc.*		8,300	$	767,667
Airlines — 2.6%
Copa Holdings S.A., Class A		5,180		738,513
Spirit Airlines, Inc.*		13,050		825,282
				1,563,795
Apparel — 2.1%
Skechers U.S.A., Inc., Class A*		6,689		305,687
Under Armour, Inc., Class A*		15,704		934,231
				1,239,918
Auto Parts & Equipment — 2.2%
BorgWarner, Inc.		9,320		607,571
Gentherm, Inc.*		15,750		700,087
				1,307,658
Banks — 2.7%
First Republic Bank		16,710		918,883
Texas Capital Bancshares, Inc.*		12,900		695,955
				1,614,838
Beverages — 2.6%
Constellation Brands, Inc., Class A*		17,800		1,568,714
Biotechnology — 3.6%
Alkermes PLC*		15,250		767,533
Alnylam Pharmaceuticals, Inc.*		8,160		515,467
Novavax, Inc.*		47,393		218,956
NPS Pharmaceuticals, Inc.*		7,701		254,518
Puma Biotechnology, Inc.*		4,370		288,420
Tekmira Pharmaceuticals Corp*		7,922		103,461
				2,148,355
Chemicals — 1.5%
WR Grace & Co.*		9,754		922,046
Commercial Services — 13.0%
Alliance Data Systems Corp.*		2,460		691,875
Bright Horizons Family Solutions, Inc.*		13,260		569,384
CoStar Group, Inc.*		5,434		859,496
Euronet Worldwide, Inc.*		16,620		801,749
Quanta Services, Inc.*		25,290		874,528
SEI Investments Co.		19,660		644,258
The Advisory Board Co.*		11,495		595,441
Towers Watson & Co., Class A		7,480		779,640
United Rentals, Inc.*		8,628		903,611
Vantiv, Inc., Class A*		33,187		1,115,747
				7,835,729
Computers — 3.8%
IHS, Inc., Class A*		9,934		1,347,746
Nimble Storage, Inc.*		15,570		478,310
Stratasys Ltd.*		4,238		481,564
				2,307,620
Distribution & Wholesale — 1.8%
LKQ Corp.*		40,997		1,094,210

	Number of Shares		Value†
Diversified Financial Services — 1.5%
Affiliated Managers Group, Inc.*		4,280	$	879,112
Electrical Components & Equipment — 1.6%
Acuity Brands, Inc.		6,893		952,957
Electronics — 2.3%
FEI Co.		8,855		803,414
FLIR Systems, Inc.		16,040		557,069
				1,360,483
Entertainment — 0.5%
Cinemark Holdings, Inc.		8,544		302,116
Food — 2.1%
Annie’s, Inc.*		15,206		514,267
United Natural Foods, Inc.*		11,660		759,066
				1,273,333
Healthcare Products — 4.3%
Cepheid, Inc.*		14,738		706,540
The Cooper Cos., Inc.		7,030		952,776
Wright Medical Group, Inc.*		29,546		927,744
				2,587,060
Healthcare Services — 2.5%
Envision Healthcare Holdings Inc*		23,030		827,007
MEDNAX, Inc.*		12,040		700,126
				1,527,133
Insurance — 0.6%
eHealth, Inc.*		8,972		340,667
Internet — 4.5%
HomeAway, Inc.*		16,155		562,517
Shutterstock, Inc.*		9,778		811,379
Vipshop Holdings Ltd. ADR*		2,430		456,208
Yelp, Inc.*		11,485		880,670
				2,710,774
Machinery — Diversified — 5.1%
Cognex Corp.*		23,940		919,296
Graco, Inc.		11,435		892,845
Wabtec Corp.		15,370		1,269,408
				3,081,549
Miscellaneous Manufacturing — 3.0%
Carlisle Cos., Inc.		737		63,839
Colfax Corp.*		11,618		866,006
Proto Labs, Inc.*		10,473		857,948
				1,787,793
Oil & Gas — 4.2%
Bonanza Creek Energy, Inc.*		1,421		81,267
Delek US Holdings, Inc.		16,790		473,982
Diamondback Energy, Inc.*		8,940		793,872
Gulfport Energy Corp.*		10,920		685,776
Sanchez Energy Corp.*		12,195		458,410
				2,493,307

105

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Schedule of Investments — June 30, 2014 (Unaudited)

SMID Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Oil & Gas Services — 0.3%
Nabors Industries Ltd.		6,274	$	184,267
Pharmaceuticals — 4.4%
BioMarin Pharmaceutical, Inc.*		9,293		578,117
GW Pharmaceuticals PLC ADR*		3,120		334,745
Jazz Pharmaceuticals PLC*		5,990		880,590
Salix Pharmaceuticals Ltd.*		6,940		856,049
				2,649,501
Retail — 7.4%
Advance Auto Parts, Inc.		5,503		742,465
Domino’s Pizza, Inc.		12,420		907,778
Krispy Kreme Doughnuts, Inc.*		31,300		500,174
Lithia Motors, Inc., Class A		8,565		805,709
Lumber Liquidators Holdings, Inc.*		8,475		643,676
Restoration Hardware Holdings, Inc.*		8,877		826,005
				4,425,807
Software — 9.1%
Aspen Technology, Inc.*		20,563		954,123
athenahealth, Inc.*		5,210		651,927
Cornerstone OnDemand, Inc.*		19,275		887,036
Fleetmatics Group PLC		15,829		511,910
Guidewire Software, Inc.*		21,060		856,300
ServiceNow, Inc.*		14,690		910,192
Tableau Software, Inc., Class A*		10,030		715,440
				5,486,928
Telecommunications — 4.4%
DigitalGlobe, Inc.*		22,686		630,671
SBA Communications Corp., Class A*		13,066		1,336,652
tw telecom, inc.*		16,270		655,843
				2,623,166
Transportation — 3.2%
Old Dominion Freight Line, Inc.*		17,920		1,141,146
Swift Transportation Co.*		29,930		755,134
				1,896,280
TOTAL COMMON STOCKS (Cost $45,643,269)				58,932,783
SHORT-TERM INVESTMENTS — 1.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,108,475)		1,108,475		1,108,475
TOTAL INVESTMENTS — 100.0% (Cost $46,751,744)			$	60,041,258

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 06/30/2014††
United States	95	%
Ireland	2
China	1
Panama	1
United Kingdom	1
Total	100	%

†† % of total investments as of June 30, 2014

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	58,932,783	$	58,932,783	$	—	$	—
SHORT-TERM INVESTMENTS		1,108,475		1,108,475		—		—
TOTAL INVESTMENTS	$	60,041,258	$	60,041,258	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

106

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Schedule of Investments — June 30, 2014 (Unaudited)

SMID Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 89.0%
Aerospace & Defense — 0.7%
Spirit Aerosystems Holdings, Inc., Class A*		15,380	$	518,306
Auto Parts & Equipment — 5.6%
Dana Holding Corp.		41,490		1,013,186
Lear Corp.		11,360		1,014,675
Tenneco, Inc.*		15,000		985,500
TRW Automotive Holdings Corp.*		10,710		958,759
				3,972,120
Banks — 8.0%
Associated Banc-Corp.		35,130		635,150
Comerica, Inc.		18,405		923,195
Huntington Bancshares, Inc.		90,300		861,462
PacWest Bancorp		12,111		522,832
Popular, Inc.*		24,819		848,314
Susquehanna Bancshares, Inc.		44,240		467,174
Webster Financial Corp.		17,080		538,703
Zions Bancorporation		28,060		826,928
				5,623,758
Biotechnology — 0.4%
Theravance, Inc.		10,150		302,267
Chemicals — 1.9%
A. Schulman, Inc.		12,030		465,561
Huntsman Corp.		31,720		891,332
				1,356,893
Commercial Services — 1.2%
Booz Allen Hamilton Holding Corp.		19,490		413,968
Convergys Corp.		20,900		448,096
				862,064
Computers — 2.7%
Brocade Communications Systems, Inc.		60,800		559,360
Insight Enterprises, Inc.*		21,990		675,973
NCR Corp.*		19,110		670,570
				1,905,903
Distribution & Wholesale — 2.3%
Arrow Electronics, Inc.*		16,570		1,000,994
WESCO International, Inc.*		7,080		611,570
				1,612,564
Diversified Financial Services — 0.9%
E*TRADE Financial Corp.*		30,810		655,021
Electric — 2.6%
PNM Resources, Inc.		31,660		928,588
Westar Energy, Inc.		24,380		931,072
				1,859,660
Electrical Components & Equipment — 0.9%
General Cable Corp.		25,650		658,179
Electronics — 4.7%
Avnet, Inc.		21,200		939,372
Jabil Circuit, Inc.		43,950		918,555
TTM Technologies, Inc.*		53,820		441,324

	Number of Shares		Value†
Electronics — (continued)
Vishay Intertechnology, Inc.		64,700	$	1,002,203
				3,301,454
Engineering & Construction — 3.4%
AECOM Technology Corp.*		19,980		643,356
Granite Construction, Inc.		12,970		466,661
Tutor Perini Corp.*		22,720		721,133
URS Corp.		12,850		589,172
				2,420,322
Food — 1.4%
Dean Foods Co.		55,705		979,851
Gas — 3.5%
Atmos Energy Corp.		14,535		776,169
Southwest Gas Corp.		14,520		766,511
UGI Corp.		18,220		920,110
				2,462,790
Hand & Machine Tools — 1.0%
Kennametal, Inc.		14,330		663,192
Healthcare Services — 2.9%
Health Net, Inc.*		12,030		499,726
LifePoint Hospitals, Inc.*		12,870		799,227
Molina Healthcare, Inc.*		16,800		749,784
				2,048,737
Home Builders — 3.1%
Meritage Homes Corp.*		20,070		847,155
PulteGroup, Inc.		36,680		739,469
Thor Industries, Inc.		9,990		568,131
				2,154,755
Household Products & Wares — 1.9%
Avery Dennison Corp.		14,350		735,438
Helen of Troy Ltd.*		10,340		626,914
				1,362,352
Insurance — 10.0%
American Financial Group, Inc.		16,490		982,144
Aspen Insurance Holdings Ltd.		21,950		996,969
Assurant, Inc.		10,130		664,022
CNO Financial Group, Inc.		42,190		750,982
Essent Group Ltd.*		4,180		83,976
Genworth Financial, Inc., Class A*		53,170		925,158
PartnerRe Ltd.		8,760		956,680
Unum Group		22,115		768,717
Validus Holdings Ltd.		23,350		892,904
				7,021,552
Internet — 1.3%
CDW Corp.		28,270		901,248
Iron & Steel — 1.8%
Commercial Metals Co.		24,540		424,787
Steel Dynamics, Inc.		47,270		848,497
				1,273,284

107

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

SMID Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Machinery — Construction & Mining — 1.0%
Terex Corp.		17,830	$	732,813
Media — 1.2%
Gannett Co., Inc.		27,420		858,520
Miscellaneous Manufacturing — 1.1%
ITT Corp.		16,080		773,448
Oil & Gas — 4.6%
Bill Barrett Corp.*		34,420		921,768
Cimarex Energy Co.		3,030		434,684
Rosetta Resources, Inc.*		18,450		1,011,982
Stone Energy Corp.*		18,260		854,385
				3,222,819
Packaging and Containers — 1.0%
Graphic Packaging Holding Co.*		59,230		692,991
Retail — 5.9%
Bloomin’ Brands, Inc.*		29,730		666,844
Brown Shoe Co., Inc.		15,090		431,725
DineEquity, Inc.		7,020		558,020
GameStop Corp., Class A		17,530		709,439
Office Depot, Inc.*		187,050		1,064,314
The Children’s Place Retail Stores, Inc.		15,190		753,880
				4,184,222
Savings & Loans — 0.8%
First Niagara Financial Group, Inc.		61,040		533,490
Semiconductors — 3.4%
Entegris, Inc.*		47,120		647,664
Lam Research Corp.		14,900		1,006,942
Teradyne, Inc.		36,620		717,752
				2,372,358
Software — 1.3%
Electronic Arts, Inc.*		25,790		925,087
Telecommunications — 4.1%
Amdocs Ltd.		16,645		771,163
Anixter International, Inc.		6,260		626,438
Genpact Ltd.		37,310		654,044
Harris Corp.		11,270		853,703
				2,905,348
Transportation — 2.4%
Con-way, Inc.		15,690		790,933
Ryder System, Inc.		9,950		876,495
				1,667,428
TOTAL COMMON STOCKS (Cost $46,442,780)				62,784,796
REAL ESTATE INVESTMENT TRUSTS — 8.9%
Apartments — 1.8%
Camden Property Trust		7,970		567,065
Mid-America Apartment Communities, Inc.		9,320		680,826
				1,247,891

	Number of Shares		Value†
Diversified — 0.7%
STAG lndustrial, Inc.		19,940	$	478,759
Healthcare — 2.2%
LTC Properties, Inc.		20,600		804,224
Medical Properties Trust, Inc.		59,790		791,620
				1,595,844
Hotels & Resorts — 1.2%
DiamondRock Hospitality Co.		64,440		826,121
Office Property — 1.9%
BioMed Realty Trust, Inc.		25,430		555,137
Parkway Properties, Inc.		37,220		768,593
				1,323,730
Strip Centers — 1.1%
DDR Corp.		45,200		796,876
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $5,556,861)				6,269,221
SHORT-TERM INVESTMENTS — 2.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,481,897)		1,481,897		1,481,897
TOTAL INVESTMENTS — 100.0% (Cost $53,481,538)			$	70,535,914

† See Security Valuation Note.

* Non-income producing security.

Country Weightings as of 06/30/2014††
United States	94	%
Bermuda	5
Puerto Rico	1
Total	100	%

†† % of total investments as of June 30, 2014

108

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

SMID Cap Value Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	62,784,796	$	62,784,796	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		6,269,221		6,269,221		—		—
SHORT-TERM INVESTMENTS		1,481,897		1,481,897		—		—
TOTAL INVESTMENTS	$	70,535,914	$	70,535,914	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

109

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 95.6%
Aerospace & Defense — 2.8%
HEICO Corp., Class A		48,818	$	1,982,011
TransDigm Group, Inc.		3,520		588,755
				2,570,766
Apparel — 5.5%
Carter’s, Inc.		26,885		1,853,183
Gildan Activewear, Inc.		12,754		750,956
Quiksilver, Inc.*		42,170		150,969
Vince Holding Corp.*		21,870		800,879
Wolverine World Wide, Inc.		56,950		1,484,117
				5,040,104
Banks — 2.3%
Bank of the Ozarks, Inc.		20,810		696,095
City National Corp.		6,070		459,863
SVB Financial Group*		8,060		939,957
				2,095,915
Biotechnology — 2.7%
Alkermes PLC*		14,861		747,954
Incyte Corp. Ltd.*		13,256		748,169
Mediwound Ltd.		16,240		184,811
NPS Pharmaceuticals, Inc.*		20,113		664,735
Puma Biotechnology, Inc.*		1,575		103,950
				2,449,619
Chemicals — 1.6%
Sensient Technologies Corp.		26,050		1,451,506
Commercial Services — 10.1%
Ascent Capital Group Inc., Class A*		5,025		331,700
CoStar Group, Inc.*		4,835		764,752
Euronet Worldwide, Inc.*		45,160		2,178,518
Gartner, Inc.*		7,225		509,507
Nord Anglia Education, Inc.*		48,040		879,132
Paylocity Corp.*		6,939		150,091
Ritchie Bros. Auctioneers, Inc.		26,395		650,637
Rollins, Inc.		12,285		368,550
Servicemaster Global Holdings, Inc.*		37,500		683,625
SP Plus Corp.*		24,340		520,633
Team Health Holdings, Inc.*		12,880		643,227
The Corporate Executive Board Co.		10,675		728,248
VistaPrint N.V.		19,920		805,963
				9,214,583
Computers — 4.3%
Cadence Design Systems, Inc.*		85,790		1,500,467
Jack Henry & Associates, Inc.		28,405		1,688,109
Stratasys Ltd.*		6,855		778,934
				3,967,510
Distribution & Wholesale — 1.7%
WESCO International, Inc.*		17,640		1,523,743
Diversified Financial Services — 2.3%
Artisan Partners Asset Management, Inc.		5,475		310,323
Financial Engines, Inc.		11,050		500,344

	Number of Shares		Value†
Diversified Financial Services — (continued)
LPL Financial Holdings, Inc.		13,535	$	673,231
MarketAxess Holdings, Inc.		11,566		625,258
				2,109,156
Electrical Components & Equipment — 2.4%
Belden, Inc.		9,285		725,715
EnerSys		7,585		521,772
GrafTech International Ltd.*		88,447		925,156
				2,172,643
Electronics — 3.4%
Measurement Specialties, Inc.*		16,465		1,417,143
National Instruments Corp.		14,375		465,606
OSI Systems, Inc.*		9,668		645,339
Trimble Navigation Ltd.*		16,660		615,587
				3,143,675
Entertainment — 2.0%
AMC Entertainment Holdings, Inc., Class A		20,860		518,788
National CineMedia, Inc.		57,853		1,013,006
SFX Entertainment, Inc.*		32,315		261,752
				1,793,546
Environmental Control — 1.0%
Clean Harbors, Inc.*		13,591		873,222
Hand & Machine Tools — 2.0%
Kennametal, Inc.		39,630		1,834,076
Healthcare Products — 5.3%
Endologix, Inc.*		75,865		1,153,907
IDEXX Laboratories, Inc.*		3,495		466,827
LDR Holding Corp.*		26,235		656,137
Masimo Corp.*		36,265		855,854
Quidel Corp.*		31,545		697,460
Techne Corp.		11,065		1,024,287
				4,854,472
Household Products & Wares — 0.8%
Prestige Brands Holdings, Inc.*		20,645		699,659
Internet — 2.0%
ChannelAdvisor Corp.*		13,500		355,860
Coupons.Com, Inc.*		9,604		252,681
Grubhub, Inc.*		3,468		122,802
RingCentral, Inc., Class A*		19,445		294,203
Zillow, Inc. Class A*		5,730		818,989
				1,844,535
Leisure Time — 0.5%
Arctic Cat, Inc.		11,085		436,971
Machinery — Diversified — 2.5%
Nordson Corp.		5,470		438,639
Tennant Co.		11,705		893,326
Wabtec Corp.		11,155		921,291
				2,253,256

110

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Miscellaneous Manufacturing — 1.1%
Polypore International, Inc.*		14,925	$	712,370
Sodastream International Ltd.*		7,650		257,040
				969,410
Oil & Gas — 1.8%
Athlon Energy, Inc.*		24,535		1,170,320
Phillips 66 Partners LP		6,900		521,364
				1,691,684
Oil & Gas Services — 4.1%
Core Laboratories N.V.		1,925		321,590
Dresser-Rand Group, Inc.*		15,990		1,019,043
Dril-Quip, Inc.*		10,944		1,195,523
Targa Resources Corp.		8,395		1,171,690
				3,707,846
Pharmaceuticals — 5.0%
Ironwood Pharmaceuticals, Inc.*		37,200		570,276
Mallinckrodt PLC*		13,355		1,068,667
Medivation, Inc.*		9,590		739,197
Pacira Pharmaceuticals, Inc.*		3,150		289,359
Phibro Animal Health Corp., Class A*		30,790		675,841
Swedish Orphan Biovitrum AB*		39,776		531,613
Synageva BioPharma Corp.*		6,893		722,386
				4,597,339
Real Estate — 1.2%
Jones Lang LaSalle, Inc.		3,840		485,337
The St. Joe Co.*		23,895		607,650
				1,092,987
Retail — 4.2%
Biglari Holdings, Inc.*		1,850		782,494
Casey’s General Stores, Inc.		10,786		758,148
Dunkin’ Brands Group, Inc.		8,255		378,162
Hibbett Sports, Inc.*		24,180		1,309,831
Sally Beauty Holdings, Inc.*		14,200		356,136
Ulta Salon Cosmetics & Fragrance, Inc.*		3,295		301,196
				3,885,967
Semiconductors — 3.9%
Atmel Corp.*		182,795		1,712,789
ON Semiconductor Corp.*		116,295		1,062,937
Sensata Technologies Holding N.V.*		16,700		781,226
				3,556,952
Software — 14.8%
Advent Software, Inc.		20,465		666,545
athenahealth, Inc.*		5,880		735,764
Blackbaud, Inc.		62,175		2,222,134
Broadridge Financial Solutions, Inc.		41,760		1,738,886
Guidewire Software, Inc.*		11,565		470,233
Informatica Corp.*		26,718		952,497
RealPage, Inc.*		84,591		1,901,606
Solera Holdings, Inc.		26,525		1,781,154
SS&C Technologies Holdings, Inc.*		69,335		3,065,994
				13,534,813

	Number of Shares		Value†
Telecommunications — 0.6%
NICE Systems, Ltd. ADR		14,545	$	593,581
Transportation — 3.7%
Expeditors International of Washington, Inc.		9,280		409,805
Landstar System, Inc.		12,810		819,840
Old Dominion Freight Line, Inc.*		20,135		1,282,197
Saia, Inc.*		18,975		833,571
				3,345,413
TOTAL COMMON STOCKS (Cost $68,930,972)				87,304,949
SHORT-TERM INVESTMENTS — 4.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $4,035,830)		4,035,830		4,035,830
TOTAL INVESTMENTS — 100.0% (Cost $72,966,802)			$	91,340,779

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

LP — Limited Partnership.

PLC — Public Limited Company.

Country Weightings as of 06/30/2014††
United States	92%
Ireland	2
Netherlands	2
Canada	1
Hong Kong	1
Israel	1
Sweden	1
Total	100%

†† % of total investments as of June 30, 2014

111

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Growth Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	87,304,949	$	87,304,949	$	—	$	—
SHORT-TERM INVESTMENTS		4,035,830		4,035,830		—		—
TOTAL INVESTMENTS	$	91,340,779	$	91,340,779	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

112

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 87.0%
Aerospace & Defense — 3.4%
Cubic Corp.		19,193	$	854,280
Esterline Technologies Corp.*		23,712		2,729,726
Kaman Corp.		35,898		1,533,922
Moog, Inc., Class A*		25,978		1,893,536
Teledyne Technologies, Inc.*		13,984		1,358,825
				8,370,289
Apparel — 0.7%
Carter’s, Inc.		14,227		980,667
Steven Madden Ltd.*		23,796		816,203
				1,796,870
Auto Parts & Equipment — 1.1%
American Axle & Manufacturing Holdings, Inc.*		53,885		1,017,888
Dana Holding Corp.		10,228		249,768
Tenneco, Inc.*		23,343		1,533,635
				2,801,291
Banks — 14.0%
BancorpSouth, Inc.		85,952		2,111,841
Bank of the Ozarks, Inc.		74,781		2,501,424
Banner Corp.		26,569		1,052,929
Boston Private Financial Holdings, Inc.		82,311		1,106,260
Bridge Capital Holdings*		15,736		380,969
CoBiz Financial, Inc.		32,669		351,845
Community Bank System, Inc.		28,918		1,046,832
First Financial Bankshares, Inc.		39,914		1,252,102
First Midwest Bancorp, Inc.		42,866		730,008
Glacier Bancorp, Inc.		65,003		1,844,785
Heritage Financial Corp.		16,744		269,411
Home BancShares, Inc.		36,231		1,189,101
Independent Bank Corp.		19,178		736,052
Independent Bank Group, Inc.		10,160		565,607
Lakeland Financial Corp.		12,081		461,011
MB Financial, Inc.		56,637		1,532,031
PacWest Bancorp		37,327		1,611,407
Pinnacle Financial Partners, Inc.		32,835		1,296,326
PrivateBancorp, Inc.		68,621		1,994,126
Prosperity Bancshares, Inc.		21,906		1,371,316
Sandy Spring Bancorp, Inc.		15,985		398,186
Sierra Bancorp		7,328		115,782
Signature Bank*		9,878		1,246,406
South State Corp.		18,484		1,127,524
Southcoast Financial Corp.*		13,748		99,948
Southwest Bancorp, Inc.		26,301		448,695
Summit State Bank		7,808		102,909
Texas Capital Bancshares, Inc.*		29,683		1,601,398
The First of Long Island Corp.		8,052		314,672
Trico Bancshares		16,146		373,618
UMB Financial Corp.		30,573		1,938,023
ViewPoint Financial Group, Inc.		52,057		1,400,854
Webster Financial Corp.		58,855		1,856,287
				34,429,685
Biotechnology — 0.5%
Exact Sciences Corp.*		68,574		1,167,815

	Number of Shares		Value†
Building Materials — 0.8%
Comfort Systems USA, Inc.		36,413	$	575,325
NCI Building Systems, Inc.*		36,328		705,853
Trex Co., Inc.*		22,913		660,353
				1,941,531
Chemicals — 3.6%
Axiall Corp.		9,830		464,664
Methanex Corp.		20,206		1,248,327
Minerals Technologies, Inc.		6,301		413,220
PolyOne Corp.		63,604		2,680,272
Quaker Chemical Corp.		11,071		850,142
Taminco Corp.*		43,656		1,015,439
Westlake Chemical Corp.		11,998		1,004,952
WR Grace & Co.*		13,256		1,253,090
				8,930,106
Commercial Services — 1.5%
Convergys Corp.		60,851		1,304,645
Live Nation Entertainment, Inc.*		50,826		1,254,894
Monro Muffler Brake, Inc.		10,940		581,899
TrueBlue, Inc.*		17,286		476,575
				3,618,013
Computers — 0.9%
CACI International, Inc., Class A*		17,768		1,247,491
Electronics for Imaging, Inc.*		19,649		888,135
				2,135,626
Distribution & Wholesale — 0.5%
WESCO International, Inc.*		13,116		1,132,960
Diversified Financial Services — 1.8%
Cohen & Steers, Inc.		9,550		414,279
E*TRADE Financial Corp.*		21,434		455,687
MarketAxess Holdings, Inc.		9,171		495,784
Moelis & Co.*		12,231		411,084
Stifel Financial Corp.*		30,310		1,435,178
Virtus Investment Partners, Inc.*		6,213		1,315,603
				4,527,615
Electric — 5.6%
ALLETE, Inc.		28,585		1,467,840
Black Hills Corp.		17,400		1,068,186
Cleco Corp.		43,941		2,590,322
Dynegy, Inc.*		26,946		937,721
El Paso Electric Co.		42,435		1,706,311
IDACORP, Inc.		35,274		2,039,895
NorthWestern Corp.		22,621		1,180,590
PNM Resources, Inc.		29,157		855,175
Portland General Electric Co.		53,086		1,840,492
				13,686,532
Electrical Components & Equipment — 0.9%
Belden, Inc.		15,658		1,223,829
Littelfuse, Inc.		10,868		1,010,181
				2,234,010

113

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electronics — 1.4%
CTS Corp.		43,238	$	808,551
Newport Corp.*		53,337		986,735
Watts Water Technologies, Inc., Class A		10,480		646,930
Woodward, Inc.		19,280		967,470
				3,409,686
Engineering & Construction — 1.0%
EMCOR Group, Inc.		38,336		1,707,102
MYR Group, Inc.*		28,621		724,970
				2,432,072
Entertainment — 1.2%
Carmike Cinemas, Inc.*		13,895		488,131
Marriott Vacations Worldwide Corp.*		17,625		1,033,354
Vail Resorts, Inc.		20,171		1,556,798
				3,078,283
Environmental Control — 0.7%
Ceco Environmental Corp.		33,618		524,104
Progressive Waste Solutions Ltd.		43,716		1,122,190
				1,646,294
Food — 0.7%
B&G Foods, Inc., Class A		16,335		533,991
The Hain Celestial Group, Inc.*		12,520		1,111,025
				1,645,016
Forest Products & Paper — 0.7%
KapStone Paper and Packaging Corp.*		52,695		1,745,785
Gas — 0.9%
Southwest Gas Corp.		40,938		2,161,117
Healthcare Products — 1.3%
Endologix, Inc.*		63,862		971,341
Hill-Rom Holdings, Inc.		26,801		1,112,510
Integra LifeSciences Holdings Corp.*		10,295		484,483
Tornier N.V.*		25,898		605,495
				3,173,829
Healthcare Services — 1.7%
Adeptus Health, Inc., Class A*		14,664		372,026
Air Methods Corp.*		21,448		1,107,789
HealthSouth Corp.		33,633		1,206,416
Surgical Care Affiliates, Inc.*		14,349		417,269
WellCare Health Plans, Inc.*		15,928		1,189,184
				4,292,684
Home Builders — 1.0%
Meritage Homes Corp.*		21,666		914,522
Standard Pacific Corp.*		109,059		937,907
William Lyon Homes, Class A*		20,645		628,434
				2,480,863
Household Products & Wares — 1.4%
Prestige Brands Holdings, Inc.*		26,631		902,525
Spectrum Brands Holdings, Inc.		29,215		2,513,366
				3,415,891

	Number of Shares		Value†
Insurance — 5.2%
American Equity Investment Life Holding Co.		96,729	$	2,379,533
AMERISAFE, Inc.		6,141		249,755
CNO Financial Group, Inc.		138,699		2,468,842
Endurance Specialty Holdings Ltd.		20,665		1,066,107
Enstar Group Ltd.*		5,349		806,255
Fidelity & Guaranty Life		19,896		476,310
Maiden Holdings Ltd.		104,340		1,261,471
Meadowbrook Insurance Group, Inc.		52,420		376,900
ProAssurance Corp.		25,681		1,140,236
Radian Group, Inc.		115,822		1,715,324
RLI Corp.		16,927		774,918
				12,715,651
Investment Companies — 0.7%
Apollo Investment Corp.		69,706		600,168
Golub Capital BDC, Inc.		19,151		338,973
New Mountain Finance Corp.		30,059		446,677
Solar Capital Ltd.		10,261		218,354
Solar Senior Capital Ltd.		6,618		111,712
THL Credit, Inc.		9,131		127,834
				1,843,718
Iron & Steel — 0.6%
AK Steel Holding Corp.*		119,849		953,998
Commercial Metals Co.		29,498		510,610
				1,464,608
Leisure Time — 0.8%
Arctic Cat, Inc.		4,987		196,587
Brunswick Corp.		20,038		844,201
Diamond Resorts International, Inc.*		37,854		880,863
				1,921,651
Machinery — Diversified — 0.9%
Applied Industrial Technologies, Inc.		24,393		1,237,457
Graco, Inc.		11,282		880,899
				2,118,356
Media — 0.1%
Time, Inc.*		15,123		366,279
Metal Fabricate/Hardware — 0.9%
CIRCOR International, Inc.		15,633		1,205,774
Olympic Steel, Inc.		9,668		239,283
RBC Bearings, Inc.		13,065		836,813
				2,281,870
Mining — 1.1%
Coeur Mining, Inc.*		33,671		309,100
Globe Specialty Metals, Inc.		37,827		786,045
Kaiser Aluminum Corp.		22,306		1,625,438
				2,720,583
Miscellaneous Manufacturing — 2.9%
Actuant Corp., Class A		56,628		1,957,630
Barnes Group, Inc.		33,630		1,296,101
Carlisle Cos., Inc.		20,121		1,742,881

114

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Miscellaneous Manufacturing — (continued)
Crane Co.		11,731	$	872,317
Movado Group, Inc.		29,845		1,243,641
				7,112,570
Oil & Gas — 4.4%
Delek US Holdings, Inc.		22,154		625,408
Laredo Petroleum, Inc.*		76,884		2,381,866
Parsley Energy, Inc., Class A*		49,630		1,194,594
Rex Energy Corp.*		122,990		2,178,153
Rice Energy, Inc.*		62,449		1,901,572
RSP Permian, Inc.*		78,146		2,535,056
				10,816,649
Oil & Gas Services — 3.0%
Dril-Quip, Inc.*		9,089		992,882
Forum Energy Technologies, Inc.*		67,975		2,476,329
Newpark Resources, Inc.*		146,428		1,824,493
Tesco Corp.		16,737		357,168
TETRA Technologies, Inc.*		73,931		870,907
Thermon Group Holdings, Inc.*		34,095		897,381
				7,419,160
Packaging and Containers — 0.7%
Berry Plastics Group, Inc.*		27,782		716,776
Graphic Packaging Holding Co.*		89,409		1,046,085
				1,762,861
Pharmaceuticals — 0.6%
Infinity Pharmaceuticals, Inc.*		83,690		1,066,211
TESARO, Inc.*		15,423		479,809
				1,546,020
Real Estate — 0.8%
Kennedy-Wilson Holdings, Inc.		75,799		2,032,929
Retail — 3.7%
Asbury Automotive Group, Inc.*		18,407		1,265,297
Bloomin’ Brands, Inc.*		32,794		735,569
First Cash Financial Services, Inc.*		13,904		800,731
GNC Holdings, Inc., Class A		31,604		1,077,696
HSN, Inc.		25,502		1,510,739
Jack in the Box, Inc.		22,301		1,334,492
Lithia Motors, Inc., Class A		2,989		281,175
Office Depot, Inc.*		132,034		751,274
Shoe Carnival, Inc.		21,408		442,075
Susser Holdings Corp.*		6,016		485,612
The Men’s Wearhouse, Inc.		10,067		561,739
				9,246,399
Savings & Loans — 1.6%
Brookline Bancorp, Inc.		35,226		330,068
Dime Community Bancshares, Inc.		22,392		353,570
Flushing Financial Corp.		34,373		706,365
Home Loan Servicing Solutions Ltd.		39,443		896,539
Oritani Financial Corp.		30,831		474,489
Provident Financial Services, Inc.		44,288		767,068
WSFS Financial Corp.		6,905		508,691
				4,036,790

	Number of Shares		Value†
Semiconductors — 4.1%
Cabot Microelectronics Corp.*		29,255	$	1,306,236
Entegris, Inc.*		119,322		1,640,081
Fairchild Semiconductor International, Inc.*		70,961		1,106,992
Intersil Corp., Class A		116,157		1,736,547
Micrel, Inc.		40,622		458,216
MKS Instruments, Inc.		49,458		1,545,068
PMC-Sierra, Inc.*		111,699		850,029
Power Integrations, Inc.		5,138		295,640
Semtech Corp.*		40,119		1,049,112
				9,987,921
Software — 4.0%
Allscripts Healthcare Solutions, Inc.*		122,056		1,958,999
Digi International, Inc.*		32,720		308,222
Everyday Health, Inc.*		30,653		566,467
Monotype Imaging Holdings, Inc.		28,502		802,901
PTC, Inc.*		27,582		1,070,182
Quality Systems, Inc.		56,858		912,571
RADWARE Ltd.*		52,701		889,066
SS&C Technologies Holdings, Inc.*		34,658		1,532,577
Verint Systems, Inc.*		34,786		1,706,253
				9,747,238
Storage & Warehousing — 0.5%
Mobile Mini, Inc.		26,951		1,290,683
Telecommunications — 1.9%
ADTRAN, Inc.		32,133		724,920
Anixter International, Inc.		17,024		1,703,592
Extreme Networks, Inc.*		108,225		480,519
Premiere Global Services, Inc.*		95,638		1,276,767
West Corp.		14,367		385,036
				4,570,834
Textiles — 0.4%
G&K Services, Inc., Class A		20,310		1,057,542
Transportation — 0.8%
Celadon Group, Inc.		2,338		49,846
Forward Air Corp.		25,386		1,214,720
Gulfmark Offshore, Inc., Class A		14,327		647,294
				1,911,860
TOTAL COMMON STOCKS (Cost $158,499,928)				214,226,035
REAL ESTATE INVESTMENT TRUSTS — 11.2%
Apartments — 0.8%
American Campus Communities, Inc.		40,089		1,533,004
Mid-America Apartment Communities, Inc.		5,163		377,157
				1,910,161
Building & Real Estate — 2.3%
Apollo Commercial Real Estate Finance, Inc.		83,520		1,377,245
Blackstone Mortgage Trust, Inc., Class A		57,819		1,676,751
MFA Financial, Inc.		176,189		1,446,512
Two Harbors Investment Corp.		110,361		1,156,583
				5,657,091

115

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Value Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Diversified — 1.3%
DuPont Fabros Technology, Inc.		47,816	$	1,289,119
PS Business Parks, Inc.		23,254		1,941,477
				3,230,596
Healthcare — 0.7%
National Health Investors, Inc.		29,578		1,850,400
Hotels & Resorts — 2.0%
Chesapeake Lodging Trust		58,838		1,778,673
Pebblebrook Hotel Trust		39,003		1,441,551
Strategic Hotels & Resorts, Inc.*		155,236		1,817,813
				5,038,037
Industrial — 0.4%
Terreno Realty Corp.		49,510		957,028
Office Property — 1.5%
Highwoods Properties, Inc.		47,120		1,976,684
Hudson Pacific Properties, Inc.		63,869		1,618,440
				3,595,124
Regional Malls — 0.7%
CBL & Associates Properties, Inc.		87,567		1,663,773
Storage & Warehousing — 0.9%
CubeSmart		119,498		2,189,203
Strip Centers — 0.6%
Acadia Realty Trust		55,787		1,567,057
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $22,558,391)				27,658,470
SHORT-TERM INVESTMENTS — 1.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $4,335,420)		4,335,420		4,335,420
TOTAL INVESTMENTS — 100.0% (Cost $185,393,739)			$	246,219,925

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	214,226,035	$	214,226,035	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		27,658,470		27,658,470		—		—
SHORT-TERM INVESTMENTS		4,335,420		4,335,420		—		—
TOTAL INVESTMENTS	$	246,219,925	$	246,219,925	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

116

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — 89.8%
Advertising — 0.1%
Harte-Hanks, Inc.		1,678	$	12,065
Marchex, Inc., Class B		745		8,955
Marin Software, Inc.*		700		8,239
MDC Partners, Inc., Class A		1,500		32,235
Millennial Media, Inc.*		2,900		14,471
Sizmek, Inc.*		757		7,214
Valuevision Media, Inc.*		1,700		8,483
				91,662
Aerospace & Defense — 1.5%
AAR Corp.		1,569		43,242
AeroVironment, Inc.*		718		22,832
Astronics Corp.*		637		35,959
Cubic Corp.		869		38,679
Curtiss-Wright Corp.		1,826		119,712
Ducommun, Inc.*		400		10,452
Esterline Technologies Corp.*		1,240		142,749
GenCorp, Inc.*		2,440		46,604
HEICO Corp.		2,615		135,823
Kaman Corp.		1,048		44,781
Kratos Defense & Security Solutions, Inc.*		2,422		18,891
LMI Aerospace, Inc.*		653		8,541
M/A-COM Technology Solutions Holdings, Inc.*		500		11,240
Moog, Inc., Class A*		1,791		130,546
National Presto Industries, Inc.		146		10,635
Orbital Sciences Corp.*		2,396		70,802
Teledyne Technologies, Inc.*		1,504		146,144
				1,037,632
Agriculture — 0.3%
Alico, Inc.		51		1,912
Alliance One International, Inc.*		2,256		5,640
Limoneira Co.		600		13,182
Tejon Ranch Co.*		688		22,147
The Andersons, Inc.		1,132		58,388
Universal Corp.		855		47,324
Vector Group Ltd.		2,769		57,263
				205,856
Airlines — 0.3%
Allegiant Travel Co.		501		59,003
Hawaiian Holdings, Inc.*		2,026		27,776
JetBlue Airways Corp.*		9,528		103,379
Republic Airways Holdings, Inc.*		1,901		20,607
SkyWest, Inc.		1,881		22,986
				233,751
Apparel — 0.9%
Columbia Sportswear Co.		511		42,234
Crocs, Inc.*		3,700		55,611
G-III Apparel Group Ltd.*		704		57,489
Iconix Brand Group, Inc.*		1,842		79,095
Oxford Industries, Inc.		508		33,868
Perry Ellis International, Inc.*		414		7,220
Quiksilver, Inc.*		5,560		19,905
RG Barry Corp.		200		3,790

	Number of Shares		Value†
Apparel — (continued)
Sequential Brands Group, Inc.*		700	$	9,667
Skechers U.S.A., Inc., Class A*		1,616		73,851
Steven Madden Ltd.*		2,249		77,141
Unifi, Inc.*		760		20,923
Vince Holding Corp.*		400		14,648
Weyco Group, Inc.		100		2,741
Wolverine World Wide, Inc.		3,982		103,771
				601,954
Auto Manufacturers — 0.1%
Wabash National Corp.*		2,600		37,050
Auto Parts & Equipment — 1.3%
Accuride Corp.*		1,000		4,890
American Axle & Manufacturing Holdings, Inc.*		2,816		53,194
Commercial Vehicle Group, Inc.*		600		6,024
Cooper Tire & Rubber Co.		2,549		76,470
Cooper-Standard Holding, Inc.*		600		39,696
Dana Holding Corp.		6,096		148,864
Dorman Products, Inc.*		992		48,925
Douglas Dynamics, Inc.		900		15,858
Federal-Mogul Holdings Corp.*		916		18,531
Fuel Systems Solutions, Inc.*		634		7,063
Gentherm, Inc.*		1,468		65,252
Meritor, Inc.*		3,645		47,531
Miller Industries, Inc.		443		9,117
Modine Manufacturing Co.*		2,077		32,692
Motorcar Parts of America, Inc.*		700		17,045
Remy International, Inc.		600		14,010
Spartan Motors, Inc.		917		4,163
Standard Motor Products, Inc.		700		31,269
Strattec Security Corp.		200		12,898
Superior Industries International, Inc.		1,119		23,074
Tenneco, Inc.*		2,400		157,680
Titan International, Inc.		1,913		32,177
Tower International, Inc.*		800		29,472
				895,895
Banks — 6.9%
1st Source Corp.		626		19,168
1st United Bancorp, Inc.		1,500		12,930
American National Bankshares, Inc.		400		8,692
Ameris Bancorp*		947		20,417
Ames National Corp.		199		4,605
Arrow Financial Corp.		364		9,442
Bancfirst Corp.		360		22,284
Banco Latinoamericano de Exportaciones S.A., Class E		1,110		32,934
Bancorp, Inc.*		1,412		16,817
BancorpSouth, Inc.		3,649		89,656
Bank of Marin Bancorp		290		13,221
Bank of the Ozarks, Inc.		3,152		105,434
Banner Corp.		800		31,704
BBCN Bancorp, Inc.		3,185		50,801
BNC Bancorp		800		13,656
Boston Private Financial Holdings, Inc.		2,858		38,412

117

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Banks — (continued)
Bridge Bancorp, Inc.		307	$	7,365
Bridge Capital Holdings*		300		7,263
Bryn Mawr Bank Corp.		532		15,492
Camden National Corp.		326		12,636
Capital Bank Financial Corp., Class A*		1,000		23,610
Capital City Bank Group, Inc.		269		3,909
Cardinal Financial Corp.		1,218		22,484
Cascade Bancorp		1,262		6,575
Cass Information Systems, Inc.		454		22,464
Cathay General Bancorp		3,050		77,958
Center Bancorp, Inc.		400		7,692
Centerstate Banks, Inc.		1,432		16,038
Central Pacific Financial Corp.		800		15,880
Century Bancorp, Inc., Class A		69		2,438
Chemical Financial Corp.		1,066		29,933
Citizens & Northern Corp.		356		6,938
City Holding Co.		648		29,238
CNB Financial Corp.		474		7,963
CoBiz Financial, Inc.		1,700		18,309
Columbia Banking System, Inc.		1,914		50,357
Community Bank System, Inc.		1,511		54,698
Community Trust Bancorp, Inc.		683		23,372
CommunityOne Bancorp*		700		6,790
Connectone Bancorp, Inc.*		100		4,989
CU Bancorp*		400		7,628
Customers Bancorp, Inc.*		880		17,609
CVB Financial Corp.		3,992		63,992
Eagle Bancorp, Inc.*		973		32,839
Enterprise Bancorp, Inc.		300		6,189
Enterprise Financial Services Corp.		782		14,123
F.N.B. Corp.		6,208		79,587
Fidelity Southern Corp.		607		7,885
Financial Institutions, Inc.		740		17,331
First Bancorp		824		15,120
First Bancorp Puerto Rico*		3,100		16,864
First Bancorp, Inc.		234		4,086
First Busey Corp.		3,602		20,928
First Business Financial Services, Inc.		200		9,406
First Citizens Bancshares, Inc., Class A		300		73,500
First Commonwealth Financial Corp.		4,021		37,074
First Community Bancshares, Inc.		626		8,971
First Connecticut Bancorp, Inc.		659		10,577
First Financial Bancorp		2,205		37,948
First Financial Bankshares, Inc.		2,452		76,919
First Financial Corp.		580		18,670
First Interstate Bancsystem, Inc.		600		16,308
First Merchants Corp.		1,238		26,171
First Midwest Bancorp, Inc.		2,814		47,922
First NBC Bank Holding Co.*		600		20,106
FirstMerit Corp.		6,394		126,281
Franklin Financial Corp.*		400		8,680
German American Bancorp, Inc.		692		18,739
Glacier Bancorp, Inc.		2,721		77,222
Great Southern Bancorp, Inc.		471		15,096
Guaranty Bancorp		900		12,510
Hancock Holding Co.		3,272		115,567

	Number of Shares		Value†
Banks — (continued)
Hanmi Financial Corp		1,213	$	25,570
Heartland Financial USA, Inc.		717		17,731
Heritage Commerce Corp.		600		4,902
Heritage Financial Corp.		1,130		18,182
Heritage Oaks Bancorp*		1,500		11,445
Home BancShares, Inc.		2,164		71,022
Horizon Bancorp		400		8,736
Hudson Valley Holding Corp.		462		8,339
Iberiabank Corp.		1,246		86,211
Independent Bank Corp.		1,000		12,870
Independent Bank Corp.		971		37,267
Independent Bank Group, Inc.		400		22,268
International Bancshares Corp.		2,225		60,075
Lakeland Bancorp, Inc.		1,111		11,999
Lakeland Financial Corp.		594		22,667
Macatawa Bank Corp.		1,900		9,633
MainSource Financial Group, Inc.		1,021		17,612
MB Financial, Inc.		2,049		55,425
Mercantile Bank Corp.		500		11,440
Merchants Bancshares, Inc.		86		2,750
Metro Bancorp, Inc.*		563		13,017
MidSouth Bancorp, Inc.		186		3,700
MidWestOne Financial Group, Inc.		400		9,596
National Bankshares, Inc.		319		9,854
National Penn Bancshares, Inc.		4,487		47,472
NBT Bancorp, Inc.		1,869		44,893
Newbridge Bancorp*		1,100		8,866
Northrim BanCorp, Inc.		400		10,228
OFG Bancorp		1,810		33,322
Old National Bancorp		3,786		54,064
OmniAmerican Bancorp, Inc.		291		7,275
Pacific Continental Corp.		862		11,835
Park National Corp.		424		32,733
Park Sterling Corp.		1,600		10,544
Peapack-Gladstone Financial Corp.		636		13,490
Penns Woods Bancorp, Inc.		268		12,623
Peoples Bancorp, Inc.		272		7,194
Peoples Financial Services Corp.		300		15,417
Pinnacle Financial Partners, Inc.		1,463		57,759
Preferred Bank Los Angeles CA*		500		11,820
PrivateBancorp, Inc.		2,598		75,498
Prosperity Bancshares, Inc.		2,726		170,648
Renasant Corp.		1,358		39,477
Republic Bancorp, Inc., Class A		387		9,180
S&T Bancorp, Inc.		1,259		31,286
Sandy Spring Bancorp, Inc.		1,085		27,027
Seacoast Banking Corp of Florida*		440		4,783
Sierra Bancorp		712		11,250
Simmons First National Corp., Class A		600		23,634
South State Corp.		958		58,438
Southside Bancshares, Inc.		729		21,112
Southwest Bancorp, Inc.		1,036		17,674
State Bank Financial Corp.		1,500		25,365
Stock Yards Bancorp, Inc.		445		13,306
Stonegate Bank		500		12,600

118

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Banks — (continued)
Suffolk Bancorp*		443	$	9,883
Sun Bancorp, Inc.*		1,100		4,411
Susquehanna Bancshares, Inc.		7,633		80,604
Talmer Bancorp, Inc.*		900		12,411
Taylor Capital Group, Inc.*		833		17,810
Texas Capital Bancshares, Inc.*		1,573		84,863
The Bank of Kentucky Financial Corp.		200		6,958
The First of Long Island Corp.		395		15,437
Tompkins Financial Corp.		558		26,884
TowneBank		972		15,270
Trico Bancshares		604		13,977
Tristate Capital Holdings, Inc.*		1,000		14,130
TrustCo Bank Corp.		3,252		21,723
Trustmark Corp.		2,630		64,935
UMB Financial Corp.		1,381		87,542
Umpqua Holdings Corp.		6,401		114,706
Union Bankshares Corp.		1,828		46,888
United Bankshares, Inc.		2,492		80,566
United Community Banks, Inc.		1,878		30,743
Univest Corp. of Pennsylvania		600		12,420
Valley National Bancorp		7,900		78,289
ViewPoint Financial Group, Inc.		1,666		44,832
Walker & Dunlop, Inc.*		400		5,644
Washington Trust Bancorp, Inc.		670		24,636
Webster Financial Corp.		3,528		111,273
WesBanco, Inc.		1,115		34,610
West Bancorporation, Inc.		278		4,234
Westamerica Bancorporation		1,073		56,096
Western Alliance Bancorp*		2,775		66,045
Wilshire Bancorp, Inc.		2,676		27,483
Wintrust Financial Corp.		1,742		80,132
Yadkin Financial Corp.*		600		11,304
				4,806,275
Beverages — 0.1%
Coca-Cola Bottling Co. Consolidated		174		12,819
Craft Brew Alliance, Inc.*		700		7,742
Farmers Brothers Co.*		204		4,408
National Beverage Corp.*		242		4,579
The Boston Beer Co., Inc., Class A*		310		69,291
				98,839
Biotechnology — 2.8%
Acceleron Pharma, Inc.*		700		23,779
Acorda Therapeutics, Inc.*		1,531		51,610
Agenus, Inc.*		2,000		6,440
AMAG Pharmaceuticals, Inc.*		856		17,736
Ani Pharmaceuticals, Inc.*		300		10,332
Arena Pharmaceuticals, Inc.*		8,506		49,845
Ariad Pharmaceuticals, Inc.*		6,600		42,042
BioCryst Pharmaceuticals, Inc.*		2,900		36,975
Biotime, Inc.*		400		1,220
Bluebird Bio, Inc.*		800		30,856
Cambrex Corp.*		1,167		24,157
Celldex Therapeutics, Inc.*		3,444		56,206
Cti Biopharma Corp.*		5,000		14,050

	Number of Shares		Value†
Biotechnology — (continued)
Cubist Pharmaceuticals, Inc.*		1,200	$	139
Cytokinetics, Inc.*		1,000		4,780
Cytrx Corp.*		2,600		10,868
Dendreon Corp.*		6,900		15,870
Dynavax Technologies Corp.*		10,200		16,320
Emergent BioSolutions, Inc.*		1,058		23,763
Enzo Biochem, Inc.*		1,300		6,825
Epizyme, Inc.*		300		9,336
Exact Sciences Corp.*		3,000		51,090
Exelixis, Inc.*		6,969		23,625
Five Prime Therapeutics, Inc.*		500		7,775
Foundation Medicine, Inc.*		300		8,088
Galena Biopharma, Inc.*		3,600		11,016
Geron Corp.*		5,050		16,210
Halozyme Therapeutics, Inc.*		3,589		35,459
Idera Pharmaceuticals, Inc.*		2,300		6,670
ImmunoGen, Inc.*		3,263		38,667
Immunomedics, Inc.*		2,936		10,716
Inovio Pharmaceuticals, Inc.*		2,500		27,025
Insmed, Inc.*		1,600		31,968
InterMune, Inc.*		3,843		169,668
Intrexon Corp.*		1,400		35,182
Karyopharm Therapeutics, Inc.*		400		18,620
KYTHERA Biopharmaceuticals, Inc.*		600		23,022
Lexicon Pharmaceuticals, Inc.*		8,826		14,210
Ligand Pharmaceuticals, Inc.*		844		52,573
MacroGenics, Inc.*		900		19,557
Merrimack Pharmaceuticals Inc*		3,500		25,515
Momenta Pharmaceuticals, Inc.*		1,882		22,735
Neuralstem, Inc.*		3,100		13,082
Newlink Genetics Corp.*		600		15,930
Novavax, Inc.*		7,229		33,398
NPS Pharmaceuticals, Inc.*		3,957		130,779
Omeros Corp.*		1,000		17,400
OncoMed Pharmaceuticals, Inc.*		200		4,660
Oncothyreon, Inc.*		3,300		10,692
Organovo Holdings, Inc.*		2,700		22,545
Oxford ImmunoteC Global PLC		200		3,366
Pacific Biosciences of California, Inc.*		2,400		14,832
PDL BioPharma, Inc.		6,217		60,181
Peregrine Pharmaceuticals, Inc.*		5,800		10,904
Prothena Corp. PLC		800		18,040
PTC Therapeutics, Inc.*		900		23,526
Puma Biotechnology, Inc.*		900		59,400
Repligen Corp.*		1,300		29,627
Retrophin, Inc.*		700		8,218
Rigel Pharmaceuticals, Inc.*		2,690		9,765
RTI Surgical, Inc.*		2,035		8,852
Sangamo Biosciences, Inc.*		2,403		36,694
Sequenom, Inc.*		5,097		19,725
Spectrum Pharmaceuticals, Inc.*		2,414		19,626
Stemline Therapeutics, Inc.*		400		5,868
Sunesis Pharmaceuticals, Inc.*		1,400		9,128
The Medicines Co.*		2,392		69,511
Theravance Biopharma, Inc.*		1,000		31,880

119

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Biotechnology — (continued)
Theravance, Inc.		3,200	$	95,296
Ultragenyx Pharmaceutical, Inc.*		300		13,467
Verastem, Inc.*		600		5,436
Versartis, Inc.*		200		5,608
XOMA Corp.*		3,600		16,524
ZIOPHARM Oncology, Inc.*		3,700		14,911
				1,941,411
Building Materials — 1.2%
AAON, Inc.		1,057		35,431
Apogee Enterprises, Inc.		1,043		36,359
Boise Cascade Co.*		1,600		45,824
Builders FirstSource, Inc.*		2,173		16,254
Comfort Systems USA, Inc.		1,227		19,387
Continental Building Products, Inc.*		700		10,780
Drew Industries, Inc.		991		49,560
Gibraltar Industries, Inc.*		1,101		17,076
Griffon Corp.		1,956		24,254
Headwaters, Inc.*		2,880		40,003
Louisiana-Pacific Corp.*		5,694		85,524
LSI Industries, Inc.		1,314		10,486
Masonite International Corp.*		1,200		67,512
NCI Building Systems, Inc.*		764		14,844
Nortek, Inc.*		400		35,904
Patrick Industries, Inc.*		300		13,977
PGT, Inc.*		1,700		14,399
Ply Gem Holdings, Inc.*		600		6,060
Quanex Building Products Corp.		1,725		30,826
Simpson Manufacturing Co., Inc.		1,685		61,267
Stock Building Supply Holdings, Inc.*		300		5,919
Texas Industries, Inc.*		833		76,936
Trex Co., Inc.*		1,262		36,371
Universal Forest Products, Inc.		783		37,795
US Concrete, Inc.*		600		14,850
				807,598
Chemicals — 2.0%
A. Schulman, Inc.		1,188		45,975
Aceto Corp.		1,042		18,902
American Vanguard Corp.		1,078		14,251
Axiall Corp.		2,800		132,356
Balchem Corp.		1,205		64,540
Chemtura Corp.*		3,744		97,831
Ferro Corp.*		2,638		33,133
H.B. Fuller Co.		1,980		95,238
Hawkins, Inc.		449		16,676
Innophos Holdings, Inc.		796		45,826
Innospec, Inc.		900		38,853
Intrepid Potash, Inc.*		2,100		35,196
KMG Chemicals, Inc.		200		3,596
Kraton Performance Polymers, Inc.*		1,241		27,786
Kronos Worldwide, Inc.		900		14,103
Landec Corp.*		1,218		15,213
Minerals Technologies, Inc.		1,328		87,090
Oil-Dri Corp. of America		97		2,965
Olin Corp.		3,092		83,237

	Number of Shares		Value†
Chemicals — (continued)
OM Group, Inc.		1,254	$	40,667
OMNOVA Solutions, Inc.*		2,368		21,525
PolyOne Corp.		3,755		158,236
Quaker Chemical Corp.		511		39,240
Rentech, Inc.*		7,187		18,614
Sensient Technologies Corp.		1,974		109,991
Stepan Co.		708		37,425
Taminco Corp.*		1,200		27,912
Tronox Ltd., Class A		2,400		64,560
Zep, Inc.		1,092		19,285
				1,410,222
Coal — 0.3%
Alpha Natural Resources, Inc.*		8,300		30,793
Arch Coal, Inc.		7,900		28,835
Cloud Peak Energy, Inc.*		2,600		47,892
SunCoke Energy, Inc.*		2,941		63,231
Walter Energy, Inc.		2,400		13,080
Westmoreland Coal Co.*		600		21,768
				205,599
Commercial Services — 5.3%
ABM Industries, Inc.		2,139		57,710
Acacia Research Corp.		1,880		33,370
Albany Molecular Research, Inc.*		900		18,108
American Public Education, Inc.*		755		25,957
AMN Healthcare Services, Inc.*		1,909		23,481
ARC Document Solutions, Inc.*		1,436		8,415
Arrowhead Research Corp.*		2,100		30,051
Ascent Capital Group Inc., Class A*		531		35,051
Barrett Business Services, Inc.		342		16,074
Bridgepoint Education, Inc.*		480		6,374
Bright Horizons Family Solutions, Inc.*		1,200		51,528
Capella Education Co.		407		22,137
Cardtronics, Inc.*		1,763		60,083
Career Education Corp.*		2,300		10,764
Carriage Services, Inc.		600		10,278
CBIZ, Inc.*		1,340		12,100
CDI Corp.		741		10,678
Cenveo, Inc.*		1,299		4,819
Chemed Corp.		729		68,322
Civeo Corp.*		3,700		92,611
Convergys Corp.		3,983		85,396
Corvel Corp.*		462		20,873
CRA International, Inc.*		274		6,316
Cross Country Healthcare, Inc.*		1,084		7,068
Deluxe Corp.		1,907		111,712
Education Management Corp.*		1,500		2,535
Electro Rent Corp.		715		11,962
Ennis, Inc.		858		13,093
Euronet Worldwide, Inc.*		2,055		99,133
EVERTEC, Inc.		2,600		63,024
Examworks Group, Inc.*		1,200		38,076
ExlService Holdings, Inc.*		1,200		35,340
Forrester Research, Inc.		375		14,205
Franklin Covey Co.*		241		4,851

120

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Commercial Services — (continued)
FTI Consulting, Inc.*		1,556	$	58,848
Global Cash Access Holdings, Inc.*		2,396		21,324
Grand Canyon Education, Inc.*		1,756		80,723
Great Lakes Dredge & Dock Corp.*		2,751		21,980
Green Dot Corp.*		900		17,082
H&E Equipment Services, Inc.*		1,159		42,118
Healthcare Services Group, Inc.		2,680		78,899
Heartland Payment Systems, Inc.		1,469		60,538
Heidrick & Struggles International, Inc.		669		12,377
HMS Holdings Corp.*		3,415		69,700
Huron Consulting Group, Inc.*		928		65,721
ICF International, Inc.*		748		26,449
Insperity, Inc.		924		30,492
ITT Educational Services, Inc.*		900		15,021
JTH Holding, Inc., Class A*		200		6,662
K12, Inc.*		1,152		27,729
Kelly Services, Inc., Class A		1,014		17,410
Kforce, Inc.		1,086		23,512
Korn/Ferry International*		1,790		52,572
Landauer, Inc.		480		20,160
LifeLock, Inc.*		3,200		44,672
Matthews International Corp., Class A		1,105		45,935
MAXIMUS, Inc.		2,688		115,638
McGrath Rentcorp		953		35,023
Medifast, Inc.*		631		19,189
MoneyGram International Inc*		878		12,933
Monro Muffler Brake, Inc.		1,237		65,796
Monster Worldwide, Inc.*		3,900		25,506
Multi-Color Corp.		567		22,686
National Research Corp.*		687		9,611
Navigant Consulting, Inc.*		1,984		34,621
On Assignment, Inc.*		2,152		76,547
PAREXEL International Corp.*		2,199		116,195
Paylocity Corp.*		300		6,489
Pendrell Corp.*		5,800		10,208
Performant Financial Corp.*		900		9,090
PHH Corp.*		2,289		52,601
PRGX Global, Inc.*		600		3,834
Quad /Graphics, Inc.		1,000		22,370
Rent-A-Center, Inc.		1,953		56,012
Resources Connection, Inc.		1,822		23,886
RPX Corp.*		2,100		37,275
ServiceSource International, Inc.*		2,400		13,920
SFX Entertainment, Inc.*		1,500		12,150
Sotheby’s		2,341		98,299
SP Plus Corp.*		793		16,962
Steiner Leisure Ltd.*		543		23,506
Strayer Education, Inc.*		400		21,004
Team Health Holdings, Inc.*		2,772		138,434
Team, Inc.*		792		32,488
TeleTech Holdings, Inc.*		707		20,496
The Advisory Board Co.*		1,350		69,930
The Brink’s Co.		2,010		56,722
The Corporate Executive Board Co.		1,369		93,393
The Hackett Group, Inc.		516		3,081
The Providence Service Corp.*		400		14,636

	Number of Shares		Value†
Commercial Services — (continued)
Tree.com, Inc.*		400	$	11,656
Trinet Group, Inc.*		700		16,849
TrueBlue, Inc.*		1,576		43,450
Universal Technical Institute, Inc.		525		6,374
Viad Corp.		771		18,381
VistaPrint N.V.*		1,400		56,644
Weight Watchers International, Inc.		1,200		24,204
WEX, Inc.*		1,457		152,941
Xoom Corp.*		1,300		34,268
				3,686,717
Computers — 2.1%
Agilysys, Inc.*		376		5,294
CACI International, Inc., Class A*		950		66,700
Carbonite, Inc.*		800		9,576
CIBER, Inc.*		3,557		17,572
Computer Task Group, Inc.		579		9,530
Cray, Inc.*		1,699		45,193
Datalink Corp.*		900		9,000
Digimarc Corp.		300		9,780
Dot Hill Systems Corp.*		2,700		12,690
Electronics for Imaging, Inc.*		1,924		86,965
Fusion-io, Inc.*		4,300		48,590
iGATE Corp.*		1,457		53,020
Immersion Corp.*		842		10,710
Insight Enterprises, Inc.*		1,543		47,432
j2 Global, Inc.		1,874		95,312
LivePerson, Inc.*		1,925		19,539
Manhattan Associates, Inc.*		3,068		105,631
Maxwell Technologies, Inc.*		1,366		20,668
Mentor Graphics Corp.		3,976		85,762
Mercury Systems, Inc.*		1,736		19,686
MTS Systems Corp.		660		44,722
NetScout Systems, Inc.*		1,365		60,524
Nimble Storage, Inc.*		400		12,288
Qualys, Inc.*		600		15,402
Quantum Corp.*		8,761		10,688
RealD, Inc.*		1,608		20,518
Science Applications International Corp.		1,700		75,072
Silicon Graphics International Corp.*		1,366		13,141
Silver Spring Networks, Inc.*		1,500		19,995
Spansion, Inc., Class A*		2,100		44,247
Super Micro Computer, Inc.*		1,271		32,118
Sykes Enterprises, Inc.*		1,736		37,723
Synaptics, Inc.*		1,416		128,346
Syntel, Inc.*		580		49,857
The KEYW Holding Corp.*		1,300		16,341
Unisys Corp.*		2,124		52,548
Varonis Systems, Inc.*		300		8,703
Violin Memory, Inc.*		3,500		15,505
Virtusa Corp.*		889		31,826
Vocera Communications, Inc.*		800		10,560
				1,478,774
Cosmetics & Personal Care — 0.1%
Elizabeth Arden, Inc.*		1,014		21,720

121

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Cosmetics & Personal Care — (continued)
Inter Parfums, Inc.		624	$	18,439
Revlon, Inc., Class A*		570		17,385
				57,544
Distribution & Wholesale — 0.9%
Beacon Roofing Supply, Inc.*		1,981		65,611
Core-Mark Holding Co., Inc.		882		40,246
Houston Wire & Cable Co.		969		12,025
MWI Veterinary Supply, Inc.*		526		74,687
Owens & Minor, Inc.		2,576		87,532
Pool Corp.		1,776		100,451
Rentrak Corp.*		365		19,144
ScanSource, Inc.*		1,181		44,972
Speed Commerce, Inc.*		2,800		10,472
Titan Machinery, Inc.*		523		8,609
United Stationers, Inc.		1,519		62,993
Watsco, Inc.		1,038		106,665
				633,407
Diversified Financial Services — 2.5%
Aircastle Ltd.		2,576		45,776
Altisource Asset Management Corp.*		100		72,306
Altisource Portfolio Solutions SA*		600		68,748
BGC Partners, Inc., Class A		6,907		51,388
Blackhawk Network Holdings, Inc.*		500		14,110
Blackhawk Network Holdings, Inc., Class B*		1,500		40,275
Calamos Asset Management, Inc., Class A		469		6,280
Cohen & Steers, Inc.		817		35,441
Consumer Portfolio Services, Inc.*		1,100		8,382
Cowen Group, Inc., Class A*		5,390		22,746
Credit Acceptance Corp.*		224		27,574
Diamond Hill Investment Group, Inc.		150		19,158
Ellie Mae, Inc.*		1,200		37,356
Encore Capital Group, Inc.*		997		45,284
Evercore Partners, Inc., Class A		1,222		70,436
FBR & Co.*		277		7,515
Federal Agricultural Mortgage Corp., Class C		300		9,324
Financial Engines, Inc.		1,900		86,032
FXCM, Inc.		1,400		20,944
Gain Capital Holdings, Inc.		800		6,296
GAMCO Investors, Inc., Class A		262		21,759
GFI Group, Inc.		1,724		5,724
Greenhill & Co., Inc.		1,100		54,175
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		600		8,604
Higher One Holdings, Inc.*		1,500		5,715
INTL FCstone, Inc.*		793		15,797
Investment Technology Group, Inc.*		1,500		25,320
Janus Capital Group, Inc.		5,600		69,888
JGWPT Holdings, Inc., Class A*		400		4,504
KCG Holdings, Inc.*		2,175		25,839
Ladder Capital Corp.Class A*		600		10,842
Ladenburg Thalmann Financial Services, Inc.*		4,000		12,600
Manning & Napier, Inc.		300		5,178
MarketAxess Holdings, Inc.		1,499		81,036
Marlin Business Services Corp.		200		3,638

	Number of Shares		Value†
Diversified Financial Services — (continued)
Moelis & Co.*		300	$	10,083
Nelnet, Inc., Class A		799		33,103
NewStar Financial, Inc.*		1,300		18,278
Nicholas Financial, Inc.		300		4,308
Oppenheimer Holdings, Inc., Class A		238		5,710
Outerwall, Inc.*		850		50,447
PennyMac Financial Service, Class A*		500		7,595
Piper Jaffray Cos.*		687		35,566
Portfolio Recovery Associates, Inc.*		1,948		115,964
Pzena Investment Management, Inc., Class A		130		1,451
Regional Management Corp.*		200		3,094
Springleaf Holdings, Inc.*		900		23,355
Stifel Financial Corp.*		2,506		118,659
Stonegate Mortgage Corp.*		300		4,185
SWS Group, Inc.*		768		5,591
Teton Advisors, Inc., Class B~		2		82
Virtus Investment Partners, Inc.*		272		57,596
Wageworks, Inc.*		1,400		67,494
Walter Investment Management Corp.*		1,353		40,292
Westwood Holdings Group, Inc.		311		18,672
WisdomTree Investments, Inc.*		3,800		46,968
World Acceptance Corp.*		362		27,498
				1,741,981
Electric — 2.1%
ALLETE, Inc.		1,651		84,779
Ameresco, Inc., Class A*		1,100		7,733
Atlantic Power Corp.*		4,127		16,921
Avista Corp.		2,239		75,051
Black Hills Corp.		1,748		107,310
Cleco Corp.		2,371		139,770
Dynegy, Inc.*		3,900		135,720
El Paso Electric Co.		1,677		67,432
Empire District Electric Co.		1,719		44,144
EnerNOC, Inc.*		1,300		24,635
IDACORP, Inc.		2,001		115,718
MGE Energy, Inc.		1,342		53,022
NorthWestern Corp.		1,480		77,241
NRG Yield, Inc., Class A		800		41,640
Ormat Technologies, Inc.		700		20,181
Otter Tail Corp.		1,592		48,222
Pike Corp.*		1,058		9,480
PNM Resources, Inc.		3,210		94,149
Portland General Electric Co.		2,956		102,485
UIL Holdings Corp.		2,191		84,814
Unitil Corp.		663		22,429
UNS Energy Corp.		1,627		98,287
				1,471,163
Electrical Components & Equipment — 1.1%
Advanced Energy Industries, Inc.*		1,393		26,815
Belden, Inc.		1,755		137,171
Capstone Turbine Corp.*		13,500		20,385
Encore Wire Corp.		771		37,810
EnerSys, Inc.		1,823		125,404
Generac Holdings, Inc.*		2,649		129,112

122

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electrical Components & Equipment — (continued)
General Cable Corp.		1,900	$	48,754
GrafTech International Ltd.*		4,400		46,024
Graham Corp.		466		16,222
Insteel Industries, Inc.		691		13,578
Littelfuse, Inc.		878		81,610
Powell Industries, Inc.		429		28,048
PowerSecure International, Inc.*		800		7,792
Revolution Lighting Technologies, Inc.*		2,200		5,060
Universal Display Corp.*		1,549		49,723
Vicor Corp.*		422		3,536
				777,044
Electronics — 2.1%
American Science & Engineering, Inc.		278		19,346
Analogic Corp.		507		39,668
Applied Optoelectronics, Inc.*		300		6,960
Badger Meter, Inc.		659		34,696
Bel Fuse, Inc., Class B		269		6,905
Benchmark Electronics, Inc.*		2,077		52,922
Brady Corp., Class A		1,857		55,469
Checkpoint Systems, Inc.*		1,545		21,615
Coherent, Inc.*		973		64,383
Control4 Corp.*		400		7,824
CTS Corp.		1,263		23,618
Cui Global, Inc.*		700		5,880
Electro Scientific Industries, Inc.		693		4,719
ESCO Technologies, Inc.		1,034		35,818
FARO Technologies, Inc.*		620		30,454
FEI Co.		1,646		149,342
Fluidigm Corp.*		1,100		32,340
II-VI, Inc.*		2,056		29,730
InvenSense, Inc.*		2,800		63,532
Itron, Inc.*		1,500		60,825
Kemet Corp.*		1,100		6,325
Measurement Specialties, Inc.*		670		57,667
Mesa Laboratories, Inc.		100		8,396
Methode Electronics, Inc.		1,460		55,787
Multi-Fineline Electronix, Inc.*		152		1,678
Newport Corp.*		1,463		27,066
NVE Corp.*		209		11,618
OSI Systems, Inc.*		757		50,530
Park Electrochemical Corp.		833		23,499
Plexus Corp.*		1,403		60,736
Rofin-Sinar Technologies, Inc.*		1,186		28,511
Rogers Corp.*		660		43,791
Sanmina Corp.*		3,326		75,766
Sparton Corp.*		400		11,096
Stoneridge, Inc.*		1,473		15,791
Taser International, Inc.*		2,011		26,746
TTM Technologies, Inc.*		2,359		19,344
Viasystems Group, Inc.*		100		1,089
Vishay Precision Group, Inc.*		300		4,938
Watts Water Technologies, Inc., Class A		1,117		68,952
Woodward, Inc.		2,623		131,622
				1,476,994

	Number of Shares		Value†
Energy-Alternate Sources — 0.4%
Amyris, Inc.*		400	$	1,492
Clean Energy Fuels Corp.*		2,900		33,988
Enphase Energy, Inc.*		1,300		11,115
FuelCell Energy, Inc.*		6,981		16,754
FutureFuel Corp.		1,100		18,249
Green Plains Renewable Energy, Inc.		1,467		48,220
Pacific Ethanol, Inc.*		900		13,761
Pattern Energy Group, Inc.		1,600		52,976
Plug Power, Inc.*		6,800		31,824
Renewable Energy Group, Inc.*		900		10,323
REX American Resources Corp.*		192		14,076
Solazyme, Inc.*		3,100		36,518
				289,296
Engineering & Construction — 0.9%
Aegion Corp.*		1,555		36,185
Argan, Inc.		536		19,988
Dycom Industries, Inc.*		1,453		45,493
EMCOR Group, Inc.		2,663		118,583
Engility Holdings, Inc.*		700		26,782
Exponent, Inc.		520		38,537
Granite Construction, Inc.		1,444		51,955
Layne Christensen Co.*		926		12,316
MasTec, Inc.*		2,464		75,941
McDermott International, Inc.*		9,300		75,237
Mistras Group, Inc.*		800		19,616
MYR Group, Inc.*		983		24,899
Orion Marine Group, Inc.*		1,137		12,314
Sterling Construction Co., Inc.*		353		3,311
Tutor Perini Corp.*		1,397		44,341
VSE Corp.		104		7,313
				612,811
Entertainment — 0.8%
AMC Entertainment Holdings, Inc.		800		19,896
Carmike Cinemas, Inc.*		800		28,104
Churchill Downs, Inc.		520		46,857
Eros International PLC*		900		13,653
International Speedway Corp.		1,100		36,608
Isle of Capri Casinos, Inc.*		841		7,199
Marriott Vacations Worldwide Corp.*		1,100		64,493
Multimedia Games Holding Co., Inc.*		1,070		31,715
National CineMedia, Inc.		2,374		41,569
Penn National Gaming, Inc.*		3,200		38,848
Pinnacle Entertainment, Inc.*		2,182		54,943
Reading International, Inc., Class A*		700		5,971
Scientific Games Corp., Class A*		1,900		21,128
Speedway Motorsports, Inc.		316		5,767
Vail Resorts, Inc.		1,446		111,602
				528,353
Environmental Control — 0.6%
Advanced Emissions Solutions, Inc.*		800		18,344
Calgon Carbon Corp.*		2,162		48,277
Casella Waste Systems, Inc., Class A*		2,300		11,523
Ceco Environmental Corp.		709		11,053

123

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Environmental Control — (continued)
Darling International, Inc.*		6,467	$	135,160
Energy Recovery, Inc.*		1,918		9,437
Heritage-Crystal Clean, Inc.*		200		3,926
MSA Safety, Inc.		1,221		70,183
Nuverra Environmental Solutions, Inc.*		441		8,869
Tetra Tech, Inc.		2,664		73,260
U.S. Ecology, Inc.		942		46,111
				436,143
Food — 1.8%
Annie’s, Inc.*		500		16,910
B&G Foods, Inc., Class A		2,172		71,003
Boulder Brands, Inc.*		2,579		36,570
Cal-Maine Foods, Inc.		623		46,301
Calavo Growers, Inc.		451		15,257
Chiquita Brands International, Inc.*		1,824		19,790
Dean Foods Co.		3,700		65,083
Diamond Foods, Inc.*		776		21,883
Fairway Group Holdings Corp.*		600		3,990
Fresh Del Monte Produce, Inc.		1,516		46,466
Ingles Markets, Inc., Class A		604		15,915
Inventure Foods, Inc.*		500		5,635
J&J Snack Foods Corp.		632		59,484
John B. Sanfilippo & Son, Inc.		400		10,588
Lancaster Colony Corp.		772		73,464
Lifeway Foods, Inc.		87		1,216
NutriSystem, Inc.		1,037		17,743
Post Holdings, Inc.*		1,700		86,547
Sanderson Farms, Inc.		934		90,785
Seaboard Corp.*		11		33,223
Seneca Foods Corp., Class A*		211		6,457
Senomyx, Inc.*		1,800		15,570
Snyder’s-Lance, Inc.		1,879		49,718
Spartannash Co.		1,530		32,145
SUPERVALU, Inc.*		7,700		63,294
The Chefs’ Warehouse Holdings, Inc.*		750		14,828
The Fresh Market, Inc.*		1,700		56,899
Tootsie Roll Industries, Inc.		811		23,876
TreeHouse Foods, Inc.*		1,414		113,219
United Natural Foods, Inc.*		2,000		130,200
Village Super Market, Inc., Class A		268		6,333
Weis Markets, Inc.		466		21,310
				1,271,702
Forest Products & Paper — 0.6%
Clearwater Paper Corp.*		778		48,018
Deltic Timber Corp.		392		23,685
KapStone Paper and Packaging Corp.*		3,240		107,341
Neenah Paper, Inc.		574		30,508
Orchids Paper Products Co.		400		12,816
P.H. Glatfelter Co.		1,659		44,013
Resolute Forest Products*		2,700		45,306
Schweitzer-Mauduit International, Inc.		1,176		51,344
Wausau Paper Corp.		1,781		19,271
Xerium Technologies, Inc.*		400		5,584
				387,886

	Number of Shares		Value†
Gas — 1.0%
Chesapeake Utilities Corp.		357	$	25,465
New Jersey Resources Corp.		1,632		93,285
Northwest Natural Gas Co.		1,050		49,508
One Gas, Inc.		2,000		75,500
Piedmont Natural Gas Co., Inc.		3,051		114,138
South Jersey Industries, Inc.		1,340		80,949
Southwest Gas Corp.		1,794		94,705
The Laclede Group, Inc.		1,356		65,834
WGL Holdings, Inc.		1,994		85,941
				685,325
Hand & Machine Tools — 0.1%
Franklin Electric Co., Inc.		1,970		79,450
Healthcare Products — 3.2%
Abaxis, Inc.		829		36,733
ABIOMED, Inc.*		1,489		37,433
Accelerate Diagnostics, Inc.*		951		24,726
Accuray, Inc.*		2,738		24,094
Affymetrix, Inc.*		2,371		21,126
AngioDynamics, Inc.*		958		15,644
AtriCure, Inc.*		1,200		22,056
Atrion Corp.		37		12,062
BioTelemetry, Inc.*		800		5,736
Cantel Medical Corp.		1,275		46,690
Cardiovascular Systems, Inc.*		900		28,044
Cepheid, Inc.*		2,680		128,479
Cerus Corp.*		3,600		14,940
Chindex International, Inc.*		314		7,439
CONMED Corp.		1,003		44,282
CryoLife, Inc.		1,399		12,521
Cyberonics, Inc.*		1,032		64,459
Cynosure, Inc., Class A*		694		14,748
DexCom, Inc.*		2,742		108,748
Endologix, Inc.*		2,298		34,953
Exactech, Inc.*		209		5,273
GenMark Diagnostics, Inc.*		1,200		16,236
Genomic Health, Inc.*		509		13,947
Globus Medical, Inc.*		2,600		62,192
Greatbatch, Inc.*		993		48,717
Haemonetics Corp.*		1,946		68,655
Hanger, Inc.*		1,408		44,282
HeartWare International, Inc.*		689		60,976
ICU Medical, Inc.*		479		29,128
Insulet Corp.*		2,146		85,132
Integra LifeSciences Holdings Corp.*		826		38,872
Invacare Corp.		1,190		21,860
LDR Holding Corp.*		700		17,507
Luminex Corp.*		1,353		23,204
Masimo Corp.*		1,904		44,934
Merge Healthcare, Inc.*		1,657		3,761
Meridian Bioscience, Inc.		1,760		36,326
Merit Medical Systems, Inc.*		1,875		28,312
MiMedx Group, Inc.*		3,200		22,688
Natus Medical, Inc.*		1,175		29,539
Navidea Biopharmaceuticals, Inc.*		6,000		8,880
NuVasive, Inc.*		1,706		60,682

124

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Healthcare Products — (continued)
NxStage Medical, Inc.*		2,284	$	32,821
OraSure Technologies, Inc.*		2,201		18,951
Orthofix International N.V.		671		24,324
PhotoMedex, Inc.*		700		8,575
Quidel Corp.*		1,051		23,238
Rockwell Medical, Inc.*		1,800		21,582
Spectranetics Corp.*		1,765		40,383
Staar Surgical Co.*		1,400		23,520
STERIS Corp.		2,332		124,715
SurModics, Inc.*		773		16,558
Symmetry Medical, Inc.*		1,744		15,452
Tandem Diabetes Care, Inc.*		400		6,504
The Female Health Co.		904		4,981
Thoratec Corp.*		2,200		76,692
Tornier N.V.		1,200		28,056
Unilife Corp.*		3,410		10,094
Utah Medical Products, Inc.		200		10,288
Vascular Solutions, Inc.*		883		19,594
Volcano Corp.*		1,964		34,586
West Pharmaceutical Services, Inc.		2,778		117,176
Wright Medical Group, Inc.*		1,861		58,435
Zeltiq Aesthetics, Inc.*		1,100		16,709
				2,209,250
Healthcare Services — 1.5%
Acadia Healthcare Co., Inc.*		1,500		68,250
Addus Homecare Corp.*		400		8,992
Air Methods Corp.*		1,487		76,804
Alliance Healthcare Services, Inc.*		200		5,400
Almost Family, Inc.*		177		3,908
Amedisys, Inc.*		1,306		21,863
Amsurg Corp.*		1,223		55,732
Bio-Reference Labs, Inc.*		1,007		30,432
Capital Senior Living Corp.*		1,036		24,698
Emeritus Corp.*		1,483		46,937
Five Star Quality Care, Inc.*		2,500		12,525
Gentiva Health Services, Inc.*		1,123		16,912
HealthSouth Corp.		3,536		126,836
Healthways, Inc.*		1,258		22,065
IPC The Hospitalist Co., Inc.*		647		28,610
Kindred Healthcare, Inc.		1,986		45,877
LHC Group, Inc.*		382		8,163
Magellan Health Services, Inc.*		1,041		64,792
Molina Healthcare, Inc.*		1,168		52,128
National Healthcare Corp.		406		22,854
RadNet, Inc.*		1,500		9,945
Select Medical Holdings Corp.		3,100		48,360
Skilled Healthcare Group, Inc., Class A*		561		3,529
Surgical Care Affiliates, Inc.*		400		11,632
The Ensign Group, Inc.		740		22,999
Triple-S Management Corp., Class B*		691		12,390
U.S. Physical Therapy, Inc.		591		20,206
Universal American Corp.		1,780		14,827
WellCare Health Plans, Inc.*		1,726		128,863
				1,016,529

	Number of Shares		Value†
Holding Companies — 0.2%
Harbinger Group, Inc.*		3,375	$	42,862
Horizon Pharma, Inc.*		2,400		37,968
National Bank Holdings Corp.		1,700		33,898
				114,728
Home Builders — 0.7%
Beazer Homes USA, Inc.*		924		19,386
Cavco Industries, Inc.*		269		22,946
Hovnanian Enterprises, Inc., Class A*		4,810		24,771
Installed Building Products, Inc.*		600		7,350
KB Home		3,400		63,512
LGI Homes, Inc.*		400		7,300
M/I Homes, Inc.*		836		20,290
MDC Holdings, Inc.		1,500		45,435
Meritage Homes Corp.*		1,490		62,893
Standard Pacific Corp.*		5,590		48,074
The New Home Co., Inc.*		600		8,478
The Ryland Group, Inc.		1,746		68,862
TRI Pointe Homes, Inc.*		600		9,432
UCP, Inc., Class A*		500		6,835
WCI Communities, Inc.*		400		7,724
William Lyon Homes, Class A*		600		18,264
Winnebago Industries, Inc.*		1,122		28,252
				469,804
Home Furnishings — 0.5%
American Woodmark Corp.*		369		11,760
Daktronics, Inc.		1,209		14,411
DTS, Inc.*		703		12,942
Ethan Allen Interiors, Inc.		1,028		25,433
Flexsteel Industries, Inc.		200		6,670
iRobot Corp.*		1,082		44,308
Kimball International, Inc., Class B		1,244		20,800
La-Z-Boy, Inc.		1,962		45,460
Norcraft Cos, Inc.*		500		7,155
Select Comfort Corp.*		2,072		42,807
Skullcandy, Inc.*		407		2,951
TiVo, Inc.*		4,855		62,678
Universal Electronics, Inc.*		700		34,216
VOXX International Corp.*		825		7,763
				339,354
Hotels & Resorts — 0.1%
Caesars Entertainment Corp.*		2,000		36,160
La Quinta Holdings Inc*		1,800		34,452
				70,612
Household Products & Wares — 0.4%
ACCO Brands Corp.*		4,393		28,159
Central Garden & Pet Co., Class A*		1,202		11,058
CSS Industries, Inc.		212		5,591
Helen of Troy Ltd.*		1,095		66,390
Prestige Brands Holdings, Inc.*		1,972		66,831
Tumi Holdings, Inc.*		1,800		36,234
WD-40 Co.		646		48,592
				262,855

125

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Housewares — 0.0%
Libbey, Inc.*		800	$	21,312
Lifetime Brands, Inc.		200		3,144
				24,456
Insurance — 2.9%
Ambac Financial Group, Inc.*		1,700		46,427
American Equity Investment Life Holding Co.		2,876		70,750
AMERISAFE, Inc.		708		28,794
Amtrust Financial Services, Inc.		1,267		52,973
Argo Group International Holdings Ltd.		1,041		53,206
Atlas Financial Holdings, Inc.*		400		6,064
Baldwin & Lyons, Inc., Class B		325		8,431
Citizens, Inc.*		1,466		10,848
CNO Financial Group, Inc.		8,493		151,175
Crawford & Co., Class B		1,538		15,503
Donegal Group, Inc., Class A		283		4,330
eHealth, Inc.*		720		27,338
EMC Insurance Group, Inc.		100		3,078
Employers Holdings, Inc.		1,282		27,153
Enstar Group Ltd.*		374		56,373
Essent Group Ltd.*		1,700		34,153
FBL Financial Group, Inc., Class A		327		15,042
Federated National Holding Co.		500		12,750
Fidelity & Guaranty Life		500		11,970
First American Financial Corp.		4,173		115,968
Global Indemnity PLC		383		9,954
Greenlight Capital Re, Ltd., Class A*		1,128		37,156
Hallmark Financial Services, Inc.*		255		2,741
HCI Group, Inc.		300		12,180
Hilltop Holdings, Inc.*		2,792		59,358
Horace Mann Educators Corp.		1,509		47,186
Infinity Property & Casualty Corp.		420		28,237
Kansas City Life Insurance Co.		73		3,320
Kemper Corp.		1,800		66,348
Maiden Holdings Ltd.		2,268		27,420
Meadowbrook Insurance Group, Inc.		1,518		10,914
MGIC Investment Corp.*		12,827		118,522
Montpelier Re Holdings Ltd.		1,507		48,149
National General Holdings Corp.		1,500		26,100
National Interstate Corp.		402		11,264
National Western Life Insurance Co.,Class A		52		12,969
Nmi Holdings, Inc., Class A*		2,100		22,050
OneBeacon Insurance Group Ltd., Class A		1,100		17,094
Platinum Underwriters Holdings Ltd.		1,056		68,482
Primerica, Inc.		2,100		100,485
Radian Group, Inc.		7,603		112,600
RLI Corp.		1,722		78,833
Safety Insurance Group, Inc.		582		29,903
Selective Insurance Group, Inc.		2,175		53,766
State Auto Financial Corp.		776		18,182
Stewart Information Services Corp.		808		25,056
Symetra Financial Corp.		2,900		65,946
The Navigators Group, Inc.*		395		26,485
The Phoenix Cos., Inc.*		146		7,065
Third Point Reinsurance Ltd.		2,300		35,098
United Fire Group, Inc.		680		19,938

	Number of Shares		Value†
Insurance — (continued)
United Insurance Holdings Corp.		800	$	13,808
Universal Insurance Holdings, Inc.		1,251		16,225
				1,985,160
Internet — 2.5%
1-800-Flowers.com, Inc., Class A*		737		4,275
Angie’s List, Inc.*		1,600		19,104
Bankrate, Inc.*		2,723		47,761
Barracuda Networks, Inc.*		200		6,204
Bazaarvoice, Inc.*		1,900		14,991
Blucora, Inc.*		1,496		28,230
Blue Nile, Inc.*		439		12,292
Boingo Wireless, Inc.*		900		6,147
Brightcove, Inc.*		1,200		12,648
BroadSoft, Inc.*		1,261		33,278
ChannelAdvisor Corp.*		900		23,724
Chegg, Inc.*		3,100		21,824
Cinedigm Corp., Class A*		2,500		6,225
Cogent Communications Group, Inc.		1,819		62,846
comScore, Inc.*		1,359		48,217
Constant Contact, Inc.*		1,165		37,408
Conversant, Inc.*		2,790		70,866
Coupons.Com, Inc.*		500		13,155
CyrusOne, Inc.		700		17,430
Dealertrack Technologies, Inc.*		2,096		95,033
Dice Holdings, Inc.*		1,163		8,850
Endurance International Group Holdings, Inc.*		800		12,232
ePlus, Inc.*		174		10,127
FTD Cos, Inc.*		818		26,004
Global Eagle Entertainment, Inc.*		1,500		18,600
Global Sources Ltd.		316		2,616
Grubhub, Inc.*		400		14,164
HealthStream, Inc.*		900		21,870
ICG Group, Inc.*		1,428		29,817
Internap Network Services Corp.*		1,921		13,543
IntraLinks Holdings, Inc.*		1,700		15,113
Limelight Networks, Inc.*		1,172		3,586
Lionbridge Technologies, Inc.*		2,243		13,323
Liquidity Services, Inc.*		1,035		16,312
Marketo, Inc.*		1,100		31,988
ModusLink Global Solutions, Inc.*		945		3,534
Move, Inc.*		1,879		27,790
New Media Investment Group, Inc.*		1,300		18,343
NIC, Inc.		2,629		41,670
OpenTable, Inc.*		856		88,682
Orbitz Worldwide, Inc.*		1,476		13,136
Overstock.com, Inc.*		571		9,005
Perficient, Inc.*		1,245		24,240
QuinStreet, Inc.*		1,815		10,001
ReachLocal, Inc.*		200		1,406
RealNetworks, Inc.*		515		3,929
Reis, Inc.		400		8,432
RetailMeNot, Inc.*		1,300		34,593
RingCentral, Inc., Class A*		1,200		18,156
Safeguard Scientifics, Inc.*		1,050		21,829

126

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Internet — (continued)
Sapient Corp.*		4,152	$	67,470
Shutterfly, Inc.*		1,590		68,465
Shutterstock, Inc.*		600		49,788
SPS Commerce, Inc.*		700		44,233
Stamps.com, Inc.*		462		15,565
TechTarget, Inc.*		500		4,410
TeleCommunication Systems, Inc., Class A*		1,400		4,606
Textura Corp.*		800		18,912
Travelzoo, Inc.*		311		6,018
Trulia, Inc.*		1,486		70,407
Unwired Planet, Inc.*		1,950		4,349
VASCO Data Security International, Inc.*		728		8,445
VirnetX Holding Corp.*		1,583		27,877
Vitacost.com, Inc.*		1,300		8,138
Web.com Group, Inc.*		2,000		57,740
WebMD Health Corp.*		1,486		71,774
Wix.com Ltd.*		300		5,952
XO Group, Inc.*		1,359		16,607
Zendesk, Inc.*		400		6,952
Zix Corp.*		3,548		12,134
				1,714,391
Investment Companies — 0.1%
Arlington Asset Investment Corp., Class A		500		13,665
Caesars Acquisition Co., Class A*		1,900		23,503
				37,168
Iron & Steel — 0.2%
AK Steel Holding Corp.*		5,300		42,188
Commercial Metals Co.		4,800		83,088
Schnitzer Steel Industries, Inc., Class A		900		23,463
Shiloh Industries, Inc.*		400		7,384
Universal Stainless & Alloy Products, Inc.*		333		10,816
				166,939
Leisure Time — 0.6%
Arctic Cat, Inc.		444		17,502
Black Diamond, Inc.*		1,300		14,586
Brunswick Corp.		3,668		154,533
Callaway Golf Co.		2,746		22,847
ClubCorp Holdings, Inc.		800		14,832
Diamond Resorts International, Inc.*		1,400		32,578
Fox Factory Holding Corp.*		500		8,795
Interval Leisure Group, Inc.		1,416		31,067
Johnson Outdoors, Inc.		200		5,160
Life Time Fitness, Inc.*		1,659		80,860
Malibu Boats, Inc., Class A*		500		10,050
Marine Products Corp.		160		1,328
Nautilus, Inc.*		1,300		14,417
				408,555
Lodging — 0.2%
Boyd Gaming Corp.*		3,000		36,390
Intrawest Resorts Holdings, Inc.*		1,000		11,460
Monarch Casino & Resort, Inc.*		185		2,801
Morgans Hotel Group Co.*		1,494		11,848

	Number of Shares		Value†
Lodging — (continued)
Orient-Express Hotels Ltd., Class A		3,745	$	54,452
The Marcus Corp.		933		17,027
				133,978
Machinery — Construction & Mining — 0.1%
Astec Industries, Inc.		698		30,628
Hyster-Yale Materials Handling, Inc.		444		39,312
				69,940
Machinery — Diversified — 1.2%
Alamo Group, Inc.		317		17,146
Albany International Corp., Class A		1,132		42,971
Altra Industrial Motion Corp.		1,003		36,499
Applied Industrial Technologies, Inc.		1,682		85,328
Briggs & Stratton Corp.		1,936		39,611
Chart Industries, Inc.*		1,177		97,385
Cognex Corp.*		3,314		127,258
Columbus McKinnon Corp.		685		18,529
DXP Enterprises, Inc.*		422		31,878
Global Power Equipment Group, Inc.		900		14,544
Hurco Cos., Inc.		200		5,640
Intevac, Inc.*		800		6,408
Kadant, Inc.		499		19,186
Lindsay Corp.		553		46,712
Manitex International, Inc.*		500		8,120
NACCO Industries, Inc., Class A		222		11,233
Power Solutions International, Inc.*		100		7,197
Tennant Co.		736		56,171
The ExOne Co.*		200		7,924
The Gorman-Rupp Co.		751		26,563
The Middleby Corp.*		1,590		131,525
Twin Disc, Inc.		235		7,767
				845,595
Media — 1.1%
A.H. Belo Corp., Class A		1,100		13,035
Central European Media Enterprises Ltd., Class A		3,100		8,742
Crown Media Holdings, Inc., Class A*		217		788
Cumulus Media, Inc., Class A*		5,200		34,268
Daily Journal Corp.*		2		413
Demand Media, Inc.*		1,300		6,266
Dex Media, Inc.*		700		7,798
E.W. Scripps Co., Class A*		1,206		25,519
Entercom Communications Corp., Class A*		1,400		15,022
Entravision Communications Corp., Class A		2,800		17,416
Gray Television, Inc.*		2,000		26,260
Hemisphere Media Group, Inc.*		600		7,536
Houghton Mifflin Harcourt Co.*		4,300		82,388
Journal Communications, Inc., Class A*		1,784		15,824
Lee Enterprises, Inc.*		1,700		7,565
Martha Stewart Living Omnimedia, Inc., Class A*		562		2,641
Media General, Inc., Class A*		2,200		45,166
Meredith Corp.		1,500		72,540
Nexstar Broadcasting Group, Class A		1,100		56,771
Saga Communications, Inc.		133		5,682
Scholastic Corp.		956		32,590

127

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Media — (continued)
Sinclair Broadcast Group, Inc., Class A		2,817	$	97,891
The McClatchy Co., Class A*		2,400		13,320
The New York Times Co., Class A		5,321		80,933
Time, Inc.*		4,300		104,146
World Wrestling Entertainment, Inc.,Class A		1,314		15,676
				796,196
Metal Fabricate/Hardware — 0.9%
A.M. Castle & Co.*		435		4,802
Ampco-Pittsburgh Corp.		214		4,909
CIRCOR International, Inc.		735		56,691
Dynamic Materials Corp.		690		15,270
Furmanite Corp.*		1,354		15,761
Global Brass & Copper Holdings, Inc.		600		10,140
Haynes International, Inc.		564		31,917
L.B. Foster Co., Class A		366		19,808
Mueller Industries, Inc.		2,188		64,349
Mueller Water Products, Inc., Class A		6,192		53,499
NN, Inc.		700		17,906
Northwest Pipe Co.*		483		19,479
Olympic Steel, Inc.		231		5,717
Omega Flex, Inc.		59		1,158
RBC Bearings, Inc.		937		60,015
Rexnord Corp.*		3,000		84,450
RTI International Metals, Inc.*		1,113		29,595
Sun Hydraulics Corp.		859		34,875
Worthington Industries, Inc.		1,984		85,391
				615,732
Mining — 0.8%
Allied Nevada Gold Corp.*		4,000		15,040
Century Aluminum Co.*		2,254		35,343
Coeur Mining, Inc.*		3,828		35,141
Globe Specialty Metals, Inc.		2,414		50,163
Gold Resource Corp.		1,300		6,578
Hecla Mining Co.		12,817		44,219
Horsehead Holding Corp.*		1,983		36,210
Kaiser Aluminum Corp.		716		52,175
Materion Corp.		857		31,700
Molycorp, Inc.*		5,800		14,906
Noranda Aluminium Holding Corp.		600		2,118
Ring Energy, Inc.*		800		13,960
Stillwater Mining Co.*		4,524		79,396
United States Lime & Minerals, Inc.		29		1,879
US Silica Holdings, Inc.		2,100		116,424
				535,252
Miscellaneous Manufacturing — 1.9%
Actuant Corp., Class A		2,806		97,003
American Railcar Industries, Inc.		400		27,108
AZZ, Inc.		976		44,974
Barnes Group, Inc.		2,065		79,585
Blount International, Inc.*		1,995		28,150
Chase Corp.		200		6,828
CLARCOR, Inc.		1,998		123,576
EnPro Industries, Inc.*		817		59,772

	Number of Shares		Value†
Miscellaneous Manufacturing — (continued)
Fabrinet*		1,100	$	22,660
Federal Signal Corp.		2,343		34,325
FreightCar America, Inc.		570		14,273
GP Strategies Corp.*		696		18,013
Handy & Harman Ltd.*		200		5,354
Harsco Corp.		3,200		85,216
Hillenbrand, Inc.		2,374		77,440
John Bean Technologies Corp.		1,229		38,087
Koppers Holdings, Inc.		820		31,365
LSB Industries, Inc.*		749		31,211
Lydall, Inc.*		600		16,422
Movado Group, Inc.		760		31,669
Myers Industries, Inc.		1,125		22,601
NL Industries, Inc.		90		836
Park-Ohio Holdings Corp.		400		23,244
Polypore International, Inc.*		1,800		85,914
Proto Labs, Inc.*		900		73,728
Raven Industries, Inc.		1,346		44,606
Smith & Wesson Holding Corp.*		2,179		31,683
Standex International Corp.		500		37,240
Sturm Ruger & Co., Inc.		819		48,329
Tredegar Corp.		1,061		24,838
Trimas Corp.*		1,795		68,443
				1,334,493
Office & Business Equipment — 0.0%
Eastman Kodak Co.*		800		19,576
Office Furnishings — 0.4%
Herman Miller, Inc.		2,232		67,496
HNI Corp.		1,843		72,080
Interface, Inc.		2,595		48,890
Knoll, Inc.		1,953		33,845
Steelcase, Inc., Class A		3,131		47,372
				269,683
Oil & Gas — 3.3%
Abraxas Petroleum Corp.*		4,100		25,666
Adams Resources & Energy, Inc.		100		7,813
Alon USA Energy, Inc.		952		11,843
American Eagle Energy Corp.*		1,200		7,188
Apco Oil and Gas International, Inc.		258		3,723
Approach Resources, Inc.*		1,341		30,481
Bill Barrett Corp.*		2,025		54,229
Bonanza Creek Energy, Inc.*		1,300		74,347
BPZ Resources, Inc.*		4,183		12,884
Callon Petroleum Co.*		2,000		23,300
Carrizo Oil & Gas, Inc.*		1,765		122,244
Clayton Williams Energy, Inc.*		217		29,809
Comstock Resources, Inc.		1,987		57,305
Contango Oil & Gas Co.*		703		29,744
Delek US Holdings, Inc.		2,298		64,873
Diamondback Energy, Inc.*		1,500		133,200
Emerald Oil, Inc.*		2,200		16,830
Energy XXI Bermuda Ltd.		3,733		88,211
Equal Energy Ltd.		1,600		8,672

128

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Oil & Gas — (continued)
Evolution Petroleum Corp.		500	$	5,475
EXCO Resources, Inc.		6,375		37,549
Forest Oil Corp.*		3,900		8,892
FX Energy, Inc.*		1,389		5,014
Gastar Exploration, Inc.*		2,600		22,646
Goodrich Petroleum Corp.*		1,281		35,356
Halcon Resources Corp.*		9,876		71,996
Harvest Natural Resources, Inc.*		1,400		6,986
Hercules Offshore, Inc.*		6,105		24,542
Isramco, Inc.*		21		2,670
Jones Energy, Inc.*		600		12,300
Kodiak Oil & Gas Corp.*		10,300		149,865
Magnum Hunter Resources Corp.*		7,500		61,500
Matador Resources Co.*		2,900		84,912
Midstates Petroleum Co., Inc.*		1,100		7,953
Miller Energy Resources, Inc.*		1,900		12,160
Northern Oil & Gas, Inc.*		2,253		36,701
Panhandle Oil and Gas, Inc., Class A		317		17,762
Parker Drilling Co.*		5,217		34,015
Parsley Energy, Inc., Class A*		2,000		48,140
PDC Energy, Inc.*		1,412		89,168
Penn Virginia Corp.*		2,412		40,883
PetroQuest Energy, Inc.*		1,539		11,573
Quicksilver Resources, Inc.*		4,600		12,282
Resolute Energy Corp.*		3,000		25,920
Rex Energy Corp.*		1,800		31,878
Rosetta Resources, Inc.*		2,437		133,669
RSP Permian, Inc.*		900		29,196
Sanchez Energy Corp.*		1,600		60,144
Stone Energy Corp.*		2,079		97,276
Swift Energy Co.*		1,889		24,519
Synergy Resources Corp.*		2,500		33,125
Transatlantic Petroleum Ltd.*		1,000		11,390
Trecora Resources*		1,000		11,840
Triangle Petroleum Corp.*		2,800		32,900
Vaalco Energy, Inc.*		2,430		17,569
W&T Offshore, Inc.		1,643		26,896
Warren Resources, Inc.*		3,605		22,351
Western Refining, Inc.		2,037		76,489
				2,277,864
Oil & Gas Services — 1.6%
Basic Energy Services, Inc.*		1,188		34,713
C J Energy Services, Inc.*		1,930		65,195
CARBO Ceramics, Inc.		800		123,296
CHC Group Ltd.*		1,400		11,816
Dawson Geophysical Co.		215		6,160
Exterran Holdings, Inc.		2,300		103,477
Flotek Industries, Inc.*		2,000		64,320
Forum Energy Technologies, Inc.*		2,300		83,789
Geospace Technologies Corp.*		476		26,218
Gulf Island Fabrication, Inc.		518		11,147
Helix Energy Solutions Group, Inc.*		4,101		107,897
Hornbeck Offshore Services, Inc.*		1,378		64,656
ION Geophysical Corp.*		5,465		23,062
Key Energy Services, Inc.*		5,224		47,747

	Number of Shares		Value†
Oil & Gas Services — (continued)
Matrix Service Co.*		987	$	32,364
Mitcham Industries, Inc.*		300		4,194
Natural Gas Services Group, Inc.*		594		19,638
Newpark Resources, Inc.*		3,512		43,760
North Atlantic Drilling Ltd.		2,800		29,736
Pioneer Energy Services Corp.*		2,650		46,481
SEACOR Holdings, Inc.*		800		65,800
Tesco Corp.		1,400		29,876
TETRA Technologies, Inc.*		2,979		35,093
Thermon Group Holdings, Inc.*		1,100		28,952
Vantage Drilling Co.		9,090		17,453
Willbros Group, Inc.*		1,517		18,735
				1,145,575
Packaging and Containers — 0.4%
AEP Industries, Inc.*		138		4,812
Berry Plastics Group, Inc.*		3,500		90,300
Graphic Packaging Holding Co.*		12,687		148,438
UFP Technologies, Inc.*		200		4,818
				248,368
Pharmaceuticals — 3.6%
ACADIA Pharmaceuticals, Inc.*		3,200		72,288
AcelRx Pharmaceuticals, Inc.*		900		9,225
Achillion Pharmaceuticals, Inc.*		3,300		24,981
Actinium Pharmaceuticals, Inc.*		800		5,776
Aegerion Pharmaceuticals, Inc.*		1,100		35,299
Aerie Pharmaceuticals, Inc.*		300		7,431
Agios Pharmaceuticals, Inc.*		400		18,328
Akebia Therapeutics, Inc.*		300		8,337
Akorn, Inc.*		2,413		80,232
Alimera Sciences, Inc.*		1,100		6,578
Ampio Pharmaceuticals, Inc.*		1,200		10,020
Anacor Pharmaceuticals, Inc.*		1,000		17,730
Anika Therapeutics, Inc.*		500		23,165
Antares Pharma, Inc.*		5,200		13,884
Aratana Therapeutics, Inc.*		900		14,049
Array BioPharma, Inc.*		5,848		26,667
Auspex Pharmaceuticals, Inc.*		400		8,908
Auxilium Pharmaceuticals, Inc.*		2,165		43,430
AVANIR Pharmaceuticals, Inc., Class A*		5,777		32,582
Bio-Path Holdings, Inc.*		3,400		10,370
BioDelivery Sciences International, Inc.*		1,200		14,484
BioScrip, Inc.*		2,011		16,772
Cempra, Inc.*		1,200		12,876
ChemoCentryx, Inc.*		1,000		5,850
Chimerix, Inc.*		1,100		24,134
Clovis Oncology, Inc.*		1,000		41,410
Corcept Therapeutics, Inc.*		2,900		8,120
Cytori Therapeutics, Inc.*		3,510		8,389
Depomed, Inc.*		2,583		35,904
Derma Sciences, Inc.*		700		8,092
Durata Therapeutics, Inc.*		500		8,515
Dyax Corp.*		5,020		48,192
Enanta Pharmaceuticals, Inc.*		400		17,228
Endocyte, Inc.*		1,500		9,885

129

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Pharmaceuticals — (continued)
Furiex Pharmaceuticals, Inc.*		300	$	31,854
Galectin Therapeutics, Inc.*		800		11,048
Heron Therapeutics, Inc.*		900		11,088
Hyperion Therapeutics, Inc.*		400		10,440
Idenix Pharmaceuticals, Inc.*		4,493		108,281
Impax Laboratories, Inc.*		2,837		85,082
Infinity Pharmaceuticals, Inc.*		1,828		23,289
Insys Therapeutics, Inc.*		300		9,369
Intra-Cellular Therapies, Inc.*		800		13,488
Ironwood Pharmaceuticals, Inc.*		4,461		68,387
Isis Pharmaceuticals, Inc.*		4,510		155,369
Keryx Biopharmaceuticals, Inc.*		3,500		53,830
Kindred Biosciences, Inc.*		500		9,320
Lannett Co, Inc.*		997		49,471
MannKind Corp.*		8,904		97,855
Nanoviricides, Inc.*		1,500		6,345
Natural Grocers By Vitamin Cottage, Inc.*		400		8,564
Nature’s Sunshine Products, Inc.		200		3,394
Nektar Therapeutics*		4,833		61,959
Neogen Corp.*		1,502		60,786
Neurocrine Biosciences, Inc.*		2,777		41,211
Northwest Biotherapeutics, Inc.*		1,600		10,736
Nutraceutical International Corp.*		196		4,677
Ohr Pharmaceutical, Inc.*		1,000		9,510
Omega Protein Corp.*		500		6,840
Ophthotech Corp.*		600		25,386
Opko Health, Inc.*		7,176		63,436
Orexigen Therapeutics, Inc.*		4,188		25,882
Osiris Therapeutics, Inc.*		773		12,074
Pacira Pharmaceuticals, Inc.*		1,400		128,604
Pain Therapeutics, Inc.*		1,200		6,900
Pernix Therapeutics Holdings, Inc.*		1,500		13,470
PharMerica Corp.*		1,220		34,880
Phibro Animal Health Corp., Class A*		700		15,365
Portola Pharmaceuticals, Inc.*		1,500		43,770
Pozen, Inc.		1,002		8,347
Progenics Pharmaceuticals, Inc.*		2,601		11,210
Raptor Pharmaceutical Corp.*		2,600		30,030
Receptos, Inc.*		600		25,560
Relypsa, Inc.*		700		17,024
Repros Therapeutics, Inc.*		900		15,570
Revance Therapeutics, Inc.*		400		13,600
Sagent Pharmaceuticals, Inc.*		700		18,102
Sarepta Therapeutics, Inc.*		1,400		41,706
Sciclone Pharmaceuticals, Inc.*		2,277		11,977
Sucampo Pharmaceuticals, Inc., Class A*		171		1,180
Supernus Pharmaceuticals, Inc.*		600		6,570
Synageva BioPharma Corp.*		800		83,840
Synergy Pharmaceuticals, Inc.*		4,300		17,501
Synta Pharmaceuticals Corp.*		1,921		7,857
Synutra International, Inc.*		311		2,087
TESARO, Inc.*		600		18,666
Tetraphase Pharmaceuticals, Inc.*		900		12,141
Tg Therapeutics, Inc.*		1,200		11,268
TherapeuticsMD, Inc.*		3,200		14,144
Threshold Pharmaceuticals, Inc.*		2,000		7,920

	Number of Shares		Value†
Pharmaceuticals — (continued)
USANA Health Sciences, Inc.*		224	$	17,503
Vanda Pharmaceuticals, Inc.*		1,241		20,079
Vivus, Inc.*		3,770		20,056
Xencor, Inc.*		900		10,458
XenoPort, Inc.*		1,927		9,307
Zogenix, Inc.*		4,600		9,246
				2,514,040
Pipelines — 0.2%
Primoris Services Corp.		1,290		37,204
SemGroup Corp.		1,700		134,045
				171,249
Real Estate — 0.5%
Alexander & Baldwin, Inc.		1,800		74,610
AV Homes, Inc.*		195		3,188
Consolidated-Tomoka Land Co.		124		5,692
Forestar Group, Inc.*		1,163		22,202
HFF, Inc., Class A*		1,400		52,066
Kennedy-Wilson Holdings, Inc.		2,681		71,904
Marcus & Millichap, Inc.*		500		12,755
RE/MAX Holdings, Inc., Class A		400		11,836
The St. Joe Co.*		2,500		63,575
				317,828
Retail — 5.4%
Aeropostale, Inc.*		3,184		11,112
America’s Car-Mart, Inc.*		227		8,978
American Eagle Outfitters, Inc.		7,600		85,272
ANN, Inc.*		1,785		73,435
Asbury Automotive Group, Inc.*		1,249		85,856
Barnes & Noble, Inc.*		1,400		31,906
bebe Stores, Inc.		1,517		4,627
Big 5 Sporting Goods Corp.		581		7,129
Biglari Holdings, Inc.*		59		24,955
BJ’s Restaurants, Inc.*		1,020		35,608
Bloomin’ Brands, Inc.*		3,000		67,290
Bob Evans Farms, Inc.		1,042		52,152
Bravo Brio Restaurant Group, Inc.*		500		7,805
Brown Shoe Co., Inc.		1,654		47,321
Buffalo Wild Wings, Inc.*		747		123,785
Burlington Stores, Inc.*		1,200		38,232
Carrols Restaurant Group, Inc.*		1,713		12,197
Casey’s General Stores, Inc.		1,540		108,247
Cash America International, Inc.		1,125		49,984
Christopher & Banks Corp.*		1,500		13,140
Chuy’s Holdings, Inc.*		600		21,780
Citi Trends, Inc.*		503		10,794
Conn’s, Inc.*		1,104		54,526
Cracker Barrel Old Country Store, Inc.		724		72,089
Del Frisco’s Restaurant Group, Inc.*		1,000		27,560
Denny’s Corp.*		3,552		23,159
Destination Maternity Corp.		578		13,161
Destination XL Group, Inc.*		1,500		8,265
DineEquity, Inc.		671		53,338
Einstein Noah Restaurant Group, Inc.		84		1,349

130

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — (continued)
Express, Inc.*		3,154	$	53,713
Ezcorp, Inc., Class A*		1,766		20,397
Fiesta Restaurant Group, Inc.*		1,113		51,654
First Cash Financial Services, Inc.*		1,162		66,920
Five Below, Inc.*		2,100		83,811
Francesca’s Holdings Corp.*		1,658		24,439
Fred’s, Inc., Class A		1,431		21,880
Genesco, Inc.*		895		73,506
Group 1 Automotive, Inc.		907		76,469
Guess?, Inc.		2,400		64,800
Haverty Furniture Cos., Inc.		950		23,873
hhgregg, Inc.*		662		6,732
Hibbett Sports, Inc.*		955		51,732
HSN, Inc.		1,279		75,768
Ignite Restaurant Group, Inc.*		300		4,368
Jack in the Box, Inc.		1,614		96,582
Jamba, Inc.*		940		11,374
Kirkland’s, Inc.*		427		7,921
Krispy Kreme Doughnuts, Inc.*		2,622		41,900
Lands’ End, Inc.*		700		23,506
Lithia Motors, Inc., Class A		894		84,099
Lumber Liquidators Holdings, Inc.*		1,033		78,456
MarineMax, Inc.*		1,000		16,740
Mattress Firm Holding Corp.*		500		23,875
Nathan’s Famous, Inc.*		100		5,419
New York & Co., Inc.*		583		2,151
Noodles & Co.*		300		10,317
Office Depot, Inc.*		20,810		118,409
Pacific Sunwear of California, Inc.*		2,100		4,998
Papa John’s International, Inc.		1,310		55,531
PC Connection, Inc.*		565		11,684
PetMed Express, Inc.		1,113		15,003
Pier 1 Imports, Inc.		3,644		56,154
Popeyes Louisiana Kitchen, Inc.*		959		41,918
Potbelly Corp.*		300		4,788
Pricesmart, Inc.		731		63,626
Red Robin Gourmet Burgers, Inc.*		520		37,024
Regis Corp.		1,832		25,795
Restoration Hardware Holdings, Inc.*		1,200		111,660
Roundy’s, Inc.		900		4,959
Ruby Tuesday, Inc.*		2,213		16,797
Rush Enterprises, Inc., Class A*		1,435		49,751
Ruth’s Hospitality Group, Inc.		1,695		20,933
Sears Hometown and Outlet Stores, Inc.*		300		6,441
Shoe Carnival, Inc.		758		15,653
Sonic Automotive, Inc., Class A		1,534		40,927
Sonic Corp.*		2,132		47,075
Stage Stores, Inc.		1,381		25,811
Stein Mart, Inc.		1,261		17,515
Susser Holdings Corp.*		702		56,665
Systemax, Inc.*		262		3,765
Texas Roadhouse, Inc.		2,470		64,220
The Bon-Ton Stores, Inc.		500		5,155
The Buckle, Inc.		1,049		46,534
The Cato Corp., Class A		1,104		34,114
The Cheesecake Factory, Inc.		2,016		93,583

	Number of Shares		Value†
Retail — (continued)
The Children’s Place Retail Stores, Inc.		894	$	44,369
The Container Store Group, Inc.*		600		16,668
The Finish Line, Inc., Class A		1,793		53,324
The Men’s Wearhouse, Inc.		1,856		103,565
The Pantry, Inc.*		954		15,455
The Pep Boys — Manny, Moe, & Jack*		2,305		26,415
Tile Shop Holdings, Inc.*		700		10,703
Tilly’s, Inc.*		400		3,216
Tuesday Morning Corp.*		1,629		29,029
Vera Bradley, Inc.*		800		17,496
Vitamin Shoppe, Inc.*		1,200		51,624
West Marine, Inc.*		664		6,813
Winmark Corp.		100		6,963
Zoe’s Kitchen, Inc.*		200		6,876
Zumiez, Inc.*		703		19,396
				3,785,854
Savings & Loans — 1.6%
Astoria Financial Corp.		3,201		43,054
Banc of California, Inc.		800		8,720
Bank Mutual Corp.		2,432		14,106
BankFinancial Corp.		609		6,796
BBX Capital Corp.*		400		7,200
Beneficial Mutual Bancorp, Inc.*		1,249		16,936
Berkshire Hills Bancorp, Inc.		1,102		25,588
BofI Holding, Inc.*		500		36,735
Brookline Bancorp, Inc.		3,222		30,190
Capitol Federal Financial, Inc.		5,600		68,096
Charter Financial Corp.		900		9,990
Clifton Bancorp, Inc.		1,146		14,520
Dime Community Bancshares, Inc.		1,030		16,264
ESB Financial Corp.		232		3,002
EverBank Financial Corp.		3,600		72,576
First Defiance Financial Corp.		300		8,610
First Financial Northwest, Inc.		600		6,522
Flagstar Bancorp, Inc.*		800		14,480
Flushing Financial Corp.		1,338		27,496
Fox Chase Bancorp, Inc.		420		7,081
Home Loan Servicing Solutions Ltd.		2,800		63,644
Homestreet, Inc.		600		11,022
Hometrust Bancshares, Inc.*		900		14,193
Investors Bancorp, Inc.		13,955		154,203
Kearny Financial Corp.*		852		12,899
Meridian Interstate Bancorp, Inc.*		439		11,274
Meta Financial Group, Inc.		200		8,000
NASB Financial, Inc.		200		4,730
Northfield Bancorp, Inc.		2,193		28,750
Northwest Bancshares, Inc.		3,775		51,227
OceanFirst Financial Corp.		327		5,415
Oritani Financial Corp.		1,718		26,440
Pacific Premier Bancorp, Inc.*		700		9,863
Provident Financial Services, Inc.		2,403		41,620
Sterling Bancorp, Inc.		3,627		43,524
Territorial Bancorp, Inc.		243		5,074
United Community Financial Corp.*		1,700		7,021

131

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Savings & Loans — (continued)
United Financial Bancorp, Inc.		2,131	$	28,875
Washington Federal, Inc.		4,000		89,720
Waterstone Financial, Inc.		1,500		17,115
WSFS Financial Corp.		357		26,300
				1,098,871
Semiconductors — 3.3%
Aeroflex Holding Corp.*		500		5,250
Alpha & Omega Semiconductor Ltd.*		400		3,708
Ambarella, Inc.*		1,200		37,416
Amkor Technology, Inc.*		3,211		35,899
Applied Micro Circuits Corp.*		2,958		31,976
Axcelis Technologies, Inc.*		6,100		12,200
Brooks Automation, Inc.		2,477		26,677
Cabot Microelectronics Corp.*		961		42,909
Cavium, Inc.*		2,079		103,243
Ceva, Inc.*		671		9,911
Cirrus Logic, Inc.*		2,481		56,418
Cohu, Inc.		904		9,673
Cypress Semiconductor Corp.		6,200		67,642
Diodes, Inc.*		1,399		40,515
DSP Group, Inc.*		557		4,729
Emulex Corp.*		3,706		21,124
Entegris, Inc.*		5,270		72,436
Entropic Communications, Inc.*		3,832		12,761
Exar Corp.*		1,532		17,312
Fairchild Semiconductor International, Inc.*		4,900		76,440
FormFactor, Inc.*		2,172		18,071
Gerber Scientific, Inc.~		500		0
GSl Group, Inc.*		1,500		19,095
GT Advanced Technologies, Inc.*		5,299		98,561
Hittite Microwave Corp.		1,266		98,685
Inphi Corp.*		1,100		16,148
Integrated Device Technology, Inc.*		5,093		78,738
Integrated Silicon Solution, Inc.*		1,000		14,770
International Rectifier Corp.*		2,900		80,910
Intersil Corp., Class A		5,100		76,245
IXYS Corp.		1,266		15,597
Kopin Corp.*		1,507		4,913
Lattice Semiconductor Corp.*		4,924		40,623
MaxLinear, Inc., Class A*		500		5,035
Micrel, Inc.		1,845		20,812
Microsemi Corp.*		3,693		98,825
MKS Instruments, Inc.		1,996		62,355
Monolithic Power Systems, Inc.		1,567		66,362
Nanometrics, Inc.*		900		16,425
Omnivision Technologies, Inc.*		1,919		42,180
Peregrine Semiconductor Corp.*		1,100		7,546
Pericom Semiconductor Corp.*		646		5,840
Photronics, Inc.*		2,192		18,851
PLX Technology, Inc.*		1,260		8,152
PMC-Sierra, Inc.*		6,900		52,509
Power Integrations, Inc.		1,095		63,006
QLogic Corp.*		3,200		32,288
Quicklogic Corp.*		2,500		12,925
Rambus, Inc.*		4,623		66,109

	Number of Shares		Value†
Semiconductors — (continued)
Rubicon Technology, Inc.*		1,123	$	9,826
Rudolph Technologies, Inc.*		1,654		16,341
Semtech Corp.*		2,609		68,225
Silicon Image, Inc.*		2,739		13,804
Silicon Laboratories, Inc.*		1,700		83,725
Tessera Technologies, Inc.		2,123		46,876
TriQuint Semiconductor, Inc.*		6,777		107,144
Ultra Clean Holdings, Inc.*		900		8,145
Ultratech, Inc.*		978		21,692
Veeco Instruments, Inc.*		1,693		63,081
Xcerra Corp.*		2,466		22,441
				2,291,115
Software — 4.4%
ACI Worldwide, Inc.*		1,509		84,248
Actuate Corp.*		1,940		9,254
Acxiom Corp.*		2,967		64,354
Advent Software, Inc.		2,035		66,280
American Software, Inc., Class A		593		5,859
Aspen Technology, Inc.*		3,553		164,859
Audience, Inc.*		400		4,784
AVG Technologies NV		1,400		28,182
Benefitfocus, Inc.*		200		9,244
Blackbaud, Inc.		1,750		62,545
Bottomline Technologies, Inc.*		1,545		46,226
Callidus Software, Inc.*		2,000		23,880
Castlight Health, Inc., Class B*		400		6,080
CommVault Systems, Inc.*		1,848		90,866
Computer Programs & Systems, Inc.		447		28,429
Compuware Corp.		8,600		85,914
Cornerstone OnDemand, Inc.*		2,100		96,642
CSG Systems International, Inc.		1,281		33,447
Cvent, Inc.*		800		23,272
Demandware, Inc.*		1,200		83,244
Digi International, Inc.*		657		6,189
Digital River, Inc.*		1,388		21,417
E2open, Inc.*		600		12,402
Ebix, Inc.		1,336		19,118
Envestnet, Inc.*		1,300		63,596
EPAM Systems, Inc.*		1,400		61,250
Epiq Systems, Inc.		1,168		16,410
Fair Isaac Corp.		1,388		88,499
Fleetmatics Group PLC		1,500		48,510
Glu Mobile, Inc.*		2,500		12,500
Guidance Software, Inc.*		400		3,648
Guidewire Software, Inc.*		2,700		109,782
Imperva Inc*		800		20,944
inContact, Inc.*		2,100		19,299
Infoblox, Inc.*		2,100		27,615
InnerWorkings, Inc.*		1,724		14,654
Interactive Intelligence Group, Inc.*		597		33,510
Jive Software, Inc.*		1,500		12,765
Kofax Ltd.*		3,100		26,660
Luxoft Holding, Inc.*		300		10,818
ManTech International Corp., Class A		1,039		30,671
MedAssets, Inc.*		2,448		55,912

132

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Software — (continued)
Medidata Solutions, Inc.*		2,088	$	89,387
MicroStrategy, Inc., Class A*		318		44,717
Model N, Inc.*		300		3,315
Monotype Imaging Holdings, Inc.		1,599		45,044
Omnicell, Inc.*		1,435		41,199
PDF Solutions, Inc.*		1,200		25,464
Pegasystems, Inc.		1,260		26,611
Progress Software Corp.*		1,986		47,744
Proofpoint, Inc.*		1,500		56,190
PROS Holdings, Inc.*		917		24,246
QAD, Inc.		92		1,961
Qlik Technologies, Inc.*		3,441		77,835
Quality Systems, Inc.		1,704		27,349
Rally Software Development Corp.*		1,000		10,890
RealPage, Inc.*		2,000		44,960
Rocket Fuel, Inc.*		800		24,872
Rosetta Stone, Inc.*		202		1,964
Sapiens International Corp N.V.		800		6,400
Schawk, Inc.		487		9,915
SciQuest, Inc.*		900		15,921
Seachange International, Inc.*		1,273		10,197
SS&C Technologies Holdings, Inc.*		2,700		119,394
Synchronoss Technologies, Inc.*		1,346		47,056
SYNNEX Corp.*		1,094		79,698
Take-Two Interactive Software, Inc.*		3,844		85,491
Tangoe, Inc.*		1,069		16,099
The Ultimate Software Group, Inc.*		1,116		154,198
Tyler Technologies, Inc.*		1,252		114,195
Verint Systems, Inc.*		2,195		107,665
				3,093,755
Storage & Warehousing — 0.2%
Mobile Mini, Inc.		1,877		89,890
Wesco Aircraft Holdings, Inc.*		2,140		42,714
				132,604
Telecommunications — 3.0%
8X8, Inc.*		3,400		27,472
ADTRAN, Inc.		2,205		49,745
Alliance Fiber Optic Products, Inc.		600		10,860
Anixter International, Inc.		1,034		103,472
Aruba Networks, Inc.*		4,213		73,812
Atlantic Tele-Network, Inc.		449		26,042
Black Box Corp.		562		13,173
CalAmp Corp.*		1,400		30,324
Calix, Inc.*		1,487		12,164
Cbeyond, Inc.*		568		5,652
Ciena Corp.*		3,900		84,474
Cincinnati Bell, Inc.*		7,785		30,595
Clearfield, Inc.*		400		6,716
Comtech Telecommunications Corp.		552		20,606
Comverse, Inc.*		990		26,413
Consolidated Communications Holdings, Inc.		1,745		38,809
DigitalGlobe, Inc.*		2,869		79,758
EarthLink Holdings Corp.		4,016		14,939

	Number of Shares		Value†
Telecommunications — (continued)
Enventis Corp.		400	$	6,336
Extreme Networks, Inc.*		3,147		13,973
Fairpoint Communications, Inc.*		600		8,382
Finisar Corp.*		3,821		75,465
General Communication, Inc., Class A*		986		10,925
Gigamon, Inc.*		1,000		19,140
Globalstar, Inc.*		11,000		46,750
Gogo Inc*		2,200		43,032
Harmonic, Inc.*		4,270		31,854
Hawaiian Telcom Holdco, Inc.*		500		14,305
IDT Corp., Class B		800		13,936
Infinera Corp.*		4,694		43,185
Inteliquent, Inc.		1,526		21,166
Intelsat SA*		1,200		22,608
InterDigital, Inc.		1,494		71,413
Iridium Communications, Inc.*		2,500		21,150
Ixia*		2,113		24,152
KVH Industries, Inc.*		354		4,613
LogMeIn, Inc.*		881		41,072
Loral Space & Communications, Inc.*		546		39,689
Lumos Networks Corp		782		11,315
MagicJack VocalTec Ltd.		700		10,584
NETGEAR, Inc.*		1,329		46,209
Neustar, Inc., Class A*		2,400		62,448
NTELOS Holdings Corp		382		4,760
Numerex Corp.*		800		9,192
Oclaro, Inc.*		3,000		6,600
Oplink Communications, Inc.*		635		10,776
ORBCOMM, Inc.*		2,000		13,180
Parkervision, Inc.*		4,100		6,068
Plantronics, Inc.		1,667		80,099
Polycom, Inc.*		5,500		68,915
Preformed Line Products Co.		45		2,422
Premiere Global Services, Inc.*		1,656		22,108
Procera Networks, Inc.*		700		7,063
RF Micro Devices, Inc.*		11,551		110,774
RigNet, Inc.*		500		26,910
Ruckus Wireless, Inc.*		2,700		32,157
Shenandoah Telecommunications Co.		859		26,165
ShoreTel, Inc.*		2,281		14,872
Sonus Networks, Inc.*		9,215		33,082
Telenav, Inc.*		300		1,707
Tessco Technologies, Inc.		200		6,346
Ubiquiti Networks, Inc.*		1,200		54,228
USA Mobility, Inc.		1,112		17,125
ViaSat, Inc.*		1,562		90,533
Vonage Holdings Corp.*		6,100		22,875
Vringo, Inc.*		2,800		9,576
West Corp.		1,500		40,200
				2,076,461
Textiles — 0.2%
Culp, Inc.		300		5,223
G&K Services, Inc., Class A		776		40,406
UniFirst Corp.		577		61,162
				106,791

133

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Toys, Games & Hobbies — 0.0%
JAKKS Pacific, Inc.		584	$	4,520
LeapFrog Enterprises, Inc.*		2,776		20,404
				24,924
Transportation — 2.0%
Air Transport Services Group, Inc.*		2,085		17,451
Arcbest Corp.		995		43,292
Ardmore Shipping Corp.		800		11,064
Atlas Air Worldwide Holdings, Inc.*		1,048		38,619
Baltic Trading Ltd.		2,200		13,156
Bristow Group, Inc.		1,350		108,837
CAI International, Inc.*		860		18,929
Celadon Group, Inc.		935		19,934
DHT Holdings, Inc.		2,900		20,880
Echo Global Logistics, Inc.*		800		15,336
Era Group, Inc.*		800		22,944
Forward Air Corp.		1,196		57,229
Frontline Ltd.		1,200		3,504
GasLog Ltd.		1,700		54,213
Gulfmark Offshore, Inc., Class A		979		44,231
Heartland Express, Inc.		1,967		41,976
Hub Group, Inc., Class A*		1,443		72,727
International Shipholding Corp.		141		3,232
Knight Transportation, Inc.		2,264		53,815
Knightsbridge Tankers Ltd.		1,174		16,659
Marten Transport Ltd.		1,151		25,725
Matson, Inc.		1,600		42,944
Navios Maritime Acq Corp.		3,700		13,727
Navios Maritime Holdings, Inc.		3,200		32,384
Nordic American Tankers Ltd.		3,567		33,993
Patriot Transportation Holding, Inc.*		369		12,904
PHI, Inc.*		593		26,430
Quality Distribution, Inc.*		800		11,888
Roadrunner Transportation Systems, Inc.*		1,000		28,100
Safe Bulkers, Inc.		1,700		16,592
Saia, Inc.*		961		42,217
Scorpio Bulkers ,Inc.		5,200		46,280
Scorpio Tankers, Inc.		7,100		72,207
Ship Finance International Ltd.		2,284		42,460
Swift Transportation Co.*		3,300		83,259
Teekay Tankers Ltd., Class A		3,193		13,698
Universal Truckload Services, Inc.		100		2,536
UTi Worldwide, Inc.		3,400		35,156
Werner Enterprises, Inc.		1,752		46,446
XPO Logistics, Inc.*		2,141		61,275
YRC Worldwide, Inc.*		1,300		36,543
				1,404,792
Trucking and Leasing — 0.2%
Greenbrier Cos., Inc.*		1,047		60,307
TAL International Group, Inc.		1,293		57,358
Textainer Group Holdings Ltd.		812		31,359
				149,024
Water — 0.2%
American States Water Co.		1,524		50,642

	Number of Shares		Value†
Water — (continued)
Artesian Resources Corp., Class A		113	$	2,540
California Water Service Group		1,766		42,737
Connecticut Water Service, Inc.		319		10,804
Middlesex Water Co.		531		11,247
PICO Holdings, Inc.*		792		18,818
SJW Corp.		488		13,274
York Water Co.		697		14,512
				164,574
TOTAL COMMON STOCKS (Cost $43,783,205)				62,432,269
REAL ESTATE INVESTMENT TRUSTS — 8.0%
Apartments — 0.2%
American Residential Properties, Inc.*		1,300		24,375
Associated Estates Realty Corp.		2,156		38,851
Campus Crest Communities, Inc.		2,300		19,918
Education Realty Trust, Inc.		4,405		47,310
Silver Bay Realty Trust Corp.		1,637		26,716
				157,170
Building & Real Estate — 1.4%
Agree Realty Corp.		596		18,017
Altisource Residential Corp.		2,200		57,266
Anworth Mortgage Asset Corp.		5,431		28,024
Apollo Commercial Real Estate Finance, Inc.		1,600		26,384
Ares Commercial Real Estate Corp.		1,000		12,410
Capstead Mortgage Corp.		3,475		45,696
Colony Financial, Inc.		3,616		83,964
CYS Investments, Inc.		6,756		60,939
Dynex Capital, Inc.		2,307		20,417
Getty Realty Corp.		1,163		22,190
Gramercy Property Trust, Inc.		4,800		29,040
Hatteras Financial Corp.		3,800		75,278
Invesco Mortgage Capital, Inc.		4,907		85,185
iStar Financial, Inc.*		3,318		49,704
New York Mortgage Trust, Inc.		3,400		26,554
PennyMac Mortgage Investment Trust		2,692		59,062
Redwood Trust, Inc.		3,377		65,750
Resource Capital Corp.		4,700		26,461
Select Income REIT		1,500		44,460
Starwood Waypoint Residential Trust*		1,600		41,936
Sun Communities, Inc.		1,690		84,230
				962,967
Diversified — 0.9%
AG Mortgage Investment Trust, Inc.		1,188		22,489
Armada Hoffler Properties, Inc.		800		7,744
CatchMark Timber Trust, Inc., Class A		700		9,569
Corenergy Infrastructure Trust, Inc.		1,500		11,115
CoreSite Realty Corp.		700		23,149
DuPont Fabros Technology, Inc.		2,450		66,052
EPR Properties		2,010		112,299
New Residential Investment Corp.		11,200		70,560
New York Reit, Inc.		6,900		76,314

134

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Small Cap Index Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Diversified — (continued)
PS Business Parks, Inc.		765	$	63,870
STAG lndustrial, Inc.		2,100		50,421
The Geo Group, Inc.		2,768		98,900
UMH Properties, Inc.		968		9,709
Whitestone REIT		800		11,928
				634,119
Diversified Financial Services — 0.3%
American Capital Mortgage, Inc.		2,043		40,901
Apollo Residential Mortgage, Inc.		1,332		22,271
ARMOUR Residential REIT, Inc.		14,200		61,486
Owens Realty Mortgage, Inc.		300		5,835
RAIT Financial Trust, Inc.		3,606		29,822
Western Asset Mortgage Capital Corp.		1,597		22,629
				182,944
Forest Products & Paper — 0.1%
Potlatch Corp.		1,578		65,329
Healthcare — 0.7%
American Realty Capital Healthcare Trust, Inc.		6,700		72,963
Aviv REIT, Inc.		800		22,536
CareTrust Reit, Inc.*		740		14,652
Healthcare Realty Trust, Inc.		3,672		93,342
LTC Properties, Inc.		1,317		51,416
Medical Properties Trust, Inc.		6,607		87,477
National Health Investors, Inc.		1,257		78,638
Physicians Realty Trust		1,500		21,585
Sabra Healthcare REIT, Inc.		1,888		54,204
Universal Health Realty Income Trust		520		22,610
				519,423
Hotels & Resorts — 1.5%
Ashford Hospitality Prime, Inc.		864		14,826
Ashford Hospitality Trust, Inc.		2,320		26,773
Chatham Lodging Trust		1,000		21,900
Chesapeake Lodging Trust		2,089		63,150
DiamondRock Hospitality Co.		7,523		96,445
FelCor Lodging Trust, Inc.		5,018		52,739
Hersha Hospitality Trust		7,669		51,459
LaSalle Hotel Properties		4,017		141,760
Pebblebrook Hotel Trust		2,409		89,037
RLJ Lodging Trust		5,000		144,450
Ryman Hospitality Properties		1,612		77,618
Strategic Hotels & Resorts, Inc.*		9,612		112,556
Summitt Hotel Properties, Inc.		3,500		37,100
Sunstone Hotel Investors, Inc.		7,032		104,988
				1,034,801
Industrial — 0.6%
Chambers Street Properties		9,300		74,772
DCT Industrial Trust, Inc.		12,882		105,761
EastGroup Properties, Inc.		1,175		75,470
First Industrial Realty Trust, Inc.		4,429		83,443
First Potomac Realty Trust		2,392		31,383
Monmouth Real Estate Investment Corp., Class A		2,049		20,572

	Number of Shares		Value†
Industrial — (continued)
QTS Realty Trust, Inc.		500	$	14,315
Rexford Industrial Realty, Inc.		900		12,816
Terreno Realty Corp.		1,175		22,713
				441,245
Mixed Industrial/Office — 0.5%
Cousins Properties, Inc.		7,761		96,624
Gladstone Commercial Corp.		652		11,651
Investors Real Estate Trust		4,618		42,532
Lexington Realty Trust		8,015		88,245
One Liberty Properties, Inc.		503		10,734
Washington Real Estate Investment Trust		2,606		67,704
Winthrop Realty Trust		1,277		19,602
				337,092
Office Property — 0.7%
American Assets Trust, Inc.		1,400		48,370
Empire State Realty Trust, Inc.		3,200		52,800
Franklin Street Properties Corp.		3,245		40,822
Government Properties Income Trust		2,244		56,975
Highwoods Properties, Inc.		3,460		145,147
Hudson Pacific Properties, Inc.		1,900		48,146
Mack-Cali Realty Corp.		3,500		75,180
Parkway Properties, Inc.		2,680		55,342
				522,782
Regional Malls — 0.2%
Glimcher Realty Trust		5,816		62,987
Pennsylvania Real Estate Investment Trust		2,715		51,097
Rouse Properties, Inc.		1,400		23,954
				138,038
Storage & Warehousing — 0.3%
CubeSmart		5,425		99,386
Sovran Self Storage, Inc.		1,282		99,035
				198,421
Strip Centers — 0.6%
Acadia Realty Trust		2,120		59,551
Alexander’s, Inc.		57		21,060
AmREIT, Inc.		700		12,810
Cedar Realty Trust, Inc.		2,826		17,662
Equity One, Inc.		2,454		57,890
Excel Trust, Inc.		1,900		25,327
Inland Real Estate Corp.		3,688		39,203
Kite Realty Group Trust		5,007		30,743
Ramco-Gershenson Properties Trust		2,541		42,231
Retail Opportunity Investments Corp.		3,200		50,336
Saul Centers, Inc.		251		12,199
Urstadt Biddle Properties, Inc., Class A		816		17,038
				386,050
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $4,510,851)				5,580,381

135

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
RIGHTS — 0.0%
Chelsea Therapeutics Intl Ltd. — Contingent Rights*~		1,600	$	0
Leap Wireless CVR~		2,300		5,796
TOTAL RIGHTS (Cost $5,740)				5,796
	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — 0.1%
U.S. Treasury Bills
0.010%, 08/07/14+	$	65		64,998
0.025%, 07/17/14+		15		15,000
TOTAL U.S. TREASURY OBLIGATIONS (Cost $79,999)				79,998
	Number of Shares		Value†
WARRANTS — 0.0%
Clinical Data, Inc.~		354		0
Magnum Hunter Resources Corp.~		780		0
TOTAL WARRANTS (Cost $0)				0
SHORT-TERM INVESTMENTS — 2.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,440,811)		1,440,811		1,440,811
TOTAL INVESTMENTS — 100.0% (Cost $49,820,606)			$	69,539,255

† See Security Valuation Note.

* Non-income producing security.

+ Collateral pledged for derivatives.

~ Fair valued security. The total market value of fair valued securities at June 30, 2014 is $5,878.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Advertising	$	91,662	$	91,662	$	—	$	—
Aerospace & Defense		1,037,632		1,037,632		—		—
Agriculture		205,856		205,856		—		—
Airlines		233,751		233,751		—		—
Apparel		601,954		601,954		—		—
Auto Manufacturers		37,050		37,050		—		—

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
Auto Parts & Equipment	$	895,895	$	895,895	$	—	$	—
Banks		4,806,275		4,806,275		—		—
Beverages		98,839		98,839		—		—
Biotechnology		1,941,411		1,941,411		—		—
Building Materials		807,598		807,598		—		—
Chemicals		1,410,222		1,410,222		—		—
Coal		205,599		205,599		—		—
Commercial Services		3,686,717		3,686,717		—		—
Computers		1,478,774		1,478,774		—		—
Cosmetics & Personal Care		57,544		57,544		—		—
Distribution & Wholesale		633,407		633,407		—		—
Diversified Financial Services		1,741,981		1,741,899		82		—
Electric		1,471,163		1,471,163		—		—
Electrical Components & Equipment		777,044		777,044		—		—
Electronics		1,476,994		1,476,994		—		—
Energy-Alternate Sources		289,296		289,296		—		—
Engineering & Construction		612,811		612,811		—		—
Entertainment		528,353		528,353		—		—
Environmental Control		436,143		436,143		—		—
Food		1,271,702		1,271,702		—		—
Forest Products & Paper		387,886		387,886		—		—
Gas		685,325		685,325		—		—
Hand & Machine Tools		79,450		79,450		—		—
Healthcare Products		2,209,250		2,209,250		—		—
Healthcare Services		1,016,529		1,016,529		—		—
Holding Companies		114,728		114,728		—		—
Home Builders		469,804		469,804		—		—
Home Furnishings		339,354		339,354		—		—
Hotels & Resorts		70,612		70,612		—		—
Household Products & Wares		262,855		262,855		—		—
Housewares		24,456		24,456		—		—
Insurance		1,985,160		1,985,160		—		—
Internet		1,714,391		1,714,391		—		—
Investment Companies		37,168		37,168		—		—
Iron & Steel		166,939		166,939		—		—
Leisure Time		408,555		408,555		—		—
Lodging		133,978		133,978		—		—
Machinery — Construction & Mining		69,940		69,940		—		—
Machinery — Diversified		845,595		845,595		—		—
Media		796,196		796,196		—		—
Metal Fabricate/Hardware		615,732		615,732		—		—
Mining		535,252		535,252		—		—
Miscellaneous Manufacturing		1,334,493		1,334,493		—		—
Office & Business Equipment		19,576		19,576		—		—
Office Furnishings		269,683		269,683		—		—
Oil & Gas		2,277,864		2,277,864		—		—

136

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Schedule of Investments — June 30, 2014 (Unaudited)

Small Cap Index Fund

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
Oil & Gas Services	$	1,145,575	$	1,145,575	$	—	$	—
Packaging and Containers		248,368		248,368		—		—
Pharmaceuticals		2,514,040		2,514,040		—		—
Pipelines		171,249		171,249		—		—
Real Estate		317,828		317,828		—		—
Retail		3,785,854		3,785,854		—		—
Savings & Loans		1,098,871		1,098,871		—		—
Semiconductors		2,291,115		2,291,115		—		—
Software		3,093,755		3,093,755		—		—
Storage & Warehousing		132,604		132,604		—		—
Telecommunications		2,076,461		2,076,461		—		—
Textiles		106,791		106,791		—		—
Toys, Games & Hobbies		24,924		24,924		—		—
Transportation		1,404,792		1,404,792		—		—
Trucking and Leasing		149,024		149,024		—		—
Water		164,574		164,574		—		—
REAL ESTATE INVESTMENT TRUSTS		5,580,381		5,580,381		—		—
U.S. TREASURY OBLIGATIONS		79,998		—		79,998		—
RIGHTS		5,796		—		5,796		—
SHORT-TERM INVESTMENTS		1,440,811		1,440,811		—		—
TOTAL INVESTMENTS	$	69,539,255	$	69,453,379	$	85,876	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

137

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Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — 99.2%
Australia — 7.7%
AGL Energy Ltd.		4,226	$	61,686
ALS Ltd.		2,604		21,755
Alumina Ltd.*		24,432		31,102
Amcor Ltd.		9,897		97,337
AMP Ltd.		23,421		117,050
APA Group		6,565		42,652
Asciano Ltd.		6,807		36,137
ASX Ltd.		1,401		47,083
Aurizon Holdings Ltd.		15,495		72,763
Australia & New Zealand Banking Group Ltd.		22,503		707,449
Bank of Queensland Ltd.		2,771		31,851
Bendigo & Adelaide Bank Ltd.		3,376		38,838
BHP Billiton Ltd.		25,709		870,300
Boral Ltd.		7,228		35,782
Brambles Ltd.		13,072		113,278
Caltex Australia Ltd.		1,064		21,641
CFS Retail Property Trust		14,452		27,800
Coca-Cola Amatil Ltd.		4,757		42,434
Cochlear Ltd.		371		21,585
Commonwealth Bank of Australia		13,020		992,982
Computershare Ltd.		3,341		39,317
Crown Ltd.		2,801		39,935
CSL Ltd.		4,015		251,955
Dexus Property Group		41,009		42,923
Federation Centres Ltd.		9,200		21,601
Flight Centre Ltd.		439		18,400
Fortescue Metals Group Ltd.		13,476		55,276
Goodman Group		13,929		66,329
GPT Group, In Specie~		16,419		0
Harvey Norman Holdings Ltd.		3,095		9,047
Iluka Resources Ltd.		2,885		22,117
Incitec Pivot Ltd.		12,959		35,437
Insurance Australia Group Ltd.		18,449		101,596
Leighton Holdings Ltd.		829		15,423
Lend Lease Group		4,122		50,957
Macquarie Group Ltd.		2,295		129,044
Metcash Ltd.		5,828		14,508
Mirvac Group		26,971		45,397
National Australia Bank Ltd.		19,372		598,788
Newcrest Mining Ltd.		6,279		62,287
Orica Ltd.		2,716		49,889
Origin Energy Ltd.		8,636		119,055
Qantas Airways Ltd.*		6,627		7,874
QBE Insurance Group Ltd.		9,484		97,210
Ramsay Health Care Ltd.		980		42,046
REA Group Ltd.		400		16,109
Rio Tinto Ltd.		3,478		194,512
Santos Ltd.		7,487		100,674
Scentre Group*		41,494		125,206
Seek Ltd.		2,700		40,354
Sonic Healthcare Ltd.		3,379		55,217
SP AusNet*		16,495		20,609
Stockland		16,770		61,356
Suncorp Group Ltd.		10,579		135,068
Sydney Airport		9,028		35,925
Tabcorp Holdings Ltd.		6,360		20,151

	Number of Shares		Value†
Australia — (continued)
Tatts Group Ltd.		12,614	$	38,895
Telstra Corp. Ltd.		33,844		166,268
The GPT Group*		14,881		53,883
Toll Holdings Ltd.		4,477		21,530
TPG Telecom Ltd.		2,224		11,555
Transurban Group		13,872		96,666
Treasury Wine Estates Ltd.		5,248		24,793
Wesfarmers Ltd.		9,154		361,154
Westfield Corp.		16,513		111,332
Westpac Banking Corp.		25,538		815,867
Woodside Petroleum Ltd.		5,433		210,404
Woolworths Ltd.		10,009		332,406
WorleyParsons Ltd.		1,418		23,279
				8,441,129
Austria — 0.3%
Andritz AG		668		38,605
Erste Group Bank AG		1,965		63,554
Immoeast AG~		2,678		0
IMMOFINANZ AG*		6,387		22,564
OMV AG		1,135		51,287
Raiffeisen Bank International AG		750		23,944
Telekom Austria AG		2,544		24,872
Vienna Insurance Group AG Wiener Versicherung Gruppe		300		16,058
Voestalpine AG		1,009		48,018
				288,902
Belgium — 1.2%
Ageas		1,719		68,579
Anheuser-Busch InBev N.V.		6,431		738,821
Belgacom S.A.		1,133		37,599
Colruyt S.A.		647		32,868
Delhaize Group S.A.		900		60,891
Groupe Bruxelles Lambert S.A.		667		69,312
KBC Groep N.V.*		2,094		113,976
Solvay S.A.		480		82,618
Telenet Group Holding N.V.*		377		21,485
UCB S.A.		865		73,234
Umicore S.A.		1,008		46,832
				1,346,215
Bermuda — 0.1%
Seadrill Ltd.		3,129		124,112
China — 0.1%
Sands China Ltd.		19,200		145,045
Yangzijiang Shipbuilding Holdings Ltd.		19,000		16,457
				161,502
Denmark — 1.5%
A.P. Moller — Maersk A/S, B Shares		55		136,670
A.P. Moller — Maersk A/S, A Shares		25		58,817
Carlsberg A/S, B Shares		840		90,482
Coloplast A/S, B Shares		905		81,843
Danske Bank A/S		5,150		145,566
DSV A/S		1,264		41,206

138

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Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Denmark — (continued)
Novo Nordisk A/S, B Shares		15,940	$	733,641
Novozymes A/S, B Shares		1,916		96,102
Pandora A/S		923		70,774
TDC A/S		6,200		64,165
Tryg A/S		193		19,495
Vestas Wind Systems A/S*		1,794		90,510
William Demant Holding A/S*		138		12,530
				1,641,801
Finland — 0.8%
Elisa OYJ		1,000		30,590
Fortum OYJ		3,489		93,687
Kone OYJ, B Shares		2,605		108,723
Metso OYJ		1,133		42,928
Neste Oil OYJ		812		15,844
Nokia OYJ		30,791		233,157
Nokian Renkaat OYJ		765		29,854
Orion OYJ, B Shares		750		27,965
Sampo OYJ, A Shares		3,551		179,665
Stora Enso OYJ, R Shares		4,323		42,087
UPM-Kymmene OYJ		4,158		71,055
Wartsila OYJ Abp		1,184		58,722
				934,277
France — 9.6%
Accor S.A.		1,266		65,857
Aeroports de Paris		215		28,327
Air Liquide S.A.		2,798		377,766
Alcatel-Lucent*		21,121		75,426
Alstom S.A.		1,899		69,233
Arkema S.A.		505		49,152
AtoS S.A.		517		43,070
AXA S.A.		14,722		351,873
BNP Paribas S.A.		8,472		574,757
Bollore S.A.		44		28,558
Bouygues S.A.		1,712		71,242
Bureau Veritas S.A.		1,772		49,183
Cap Gemini S.A.		1,217		86,821
Carrefour S.A.		5,167		190,605
Casino Guichard Perrachon S.A.		468		62,052
Christian Dior S.A.		408		81,175
CNP Assurances		1,617		33,567
Compagnie de Saint-Gobain		3,555		200,580
Compagnie Generale des Establissements Michelin, B Shares		1,486		177,555
Credit Agricole S.A.		8,376		118,133
Danone S.A.		4,755		353,158
Dassault Systemes S.A.		484		62,271
Edenred		1,675		50,791
Electricite de France S.A.		2,020		63,618
Essilor International S.A.		1,615		171,274
Eurazeo S.A.		327		27,202
Eutelsat Communications S.A.		1,230		42,738
Fonciere Des Regions		262		28,406
GDF Suez		11,589		319,043
Gecina S.A.		190		27,708

	Number of Shares		Value†
France — (continued)
Groupe Eurotunnel S.A.		3,742	$	50,609
ICADE		313		33,559
Iliad S.A.		205		61,966
Imerys S.A.		213		17,949
JCDecaux S.A.		400		14,925
Kering		627		137,497
Klepierre		874		44,538
L’Oreal S.A.		1,920		330,867
Lafarge S.A.		1,558		135,256
Lagardere S.C.A.		948		30,875
Legrand S.A.		2,075		126,963
LVMH Moet Hennessy Louis Vuitton S.A.		2,235		430,902
Natixis		7,282		46,685
Orange S.A.		15,298		241,421
Pernod Ricard S.A.		1,689		202,828
Peugeot S.A.*		3,574		52,829
Publicis Groupe S.A.		1,423		120,691
Remy Cointreau S.A.		152		13,985
Renault S.A.		1,493		134,989
Rexel S.A.		1,862		43,548
Safran S.A.		2,129		139,392
Sanofi S.A.		9,541		1,013,543
Schneider Electric S.A.		4,173		392,844
SCOR SE		1,378		47,399
Societe BIC S.A.		246		33,658
Societe Generale S.A.		5,861		307,014
Sodexo		765		82,282
Suez Environment Co.		2,507		47,991
Technip S.A.		838		91,672
Thales S.A.		773		46,758
Total S.A.		17,258		1,247,264
Unibail-Rodamco SE		801		233,017
Valeo S.A.		573		76,962
Vallourec S.A.		794		35,558
Veolia Environment S.A.		2,970		56,590
Vinci S.A.		3,957		295,840
Vivendi S.A.		9,940		243,226
Wendel S.A.		253		36,237
Zodiac Aerospace		1,348		45,629
				10,626,899
Germany — 8.5%
Adidas AG		1,710		173,201
Allianz SE		3,656		609,250
Axel Springer AG		327		20,127
BASF SE		7,352		856,005
Bayer AG		6,620		935,031
Bayerische Motoren Werke AG		2,635		334,183
Beiersdorf AG		792		76,641
Brenntag AG		380		67,904
Celesio AG		516		18,371
Commerzbank AG*		7,602		119,500
Continental AG		878		203,360
Daimler AG		7,707		721,839
Deutsche Bank AG		10,558		371,474
Deutsche Boerse AG		1,516		117,660

139

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Germany — (continued)
Deutsche Lufthansa AG		1,991	$	42,748
Deutsche Post AG		7,742		279,976
Deutsche Telekom AG		24,942		437,160
Deutsche Wohnen AG		2,258		48,697
E.ON SE		16,018		330,756
Fraport AG Frankfurt Airport Services Worldwide		272		19,218
Fresenius Medical Care AG & Co. KGaA		1,772		119,112
Fresenius SE & Co. KGaA		987		147,178
GEA Group AG		1,522		72,067
Hannover Rueck SE		474		42,714
HeidelbergCement AG		1,060		90,469
Henkel AG & Co. KGaA		1,020		102,656
Hochtief AG		206		17,830
Hugo Boss AG		248		37,066
Infineon Technologies AG		8,492		106,153
K+S AG		1,330		43,735
Kabel Deutschland Holding AG		172		25,189
LANXESS AG		691		46,642
Linde AG		1,518		322,806
MAN SE		297		36,703
Merck KGaA		1,016		88,189
Metro AG		1,107		48,248
Muenchener Ruckversicherungs AG		1,463		324,332
OSRAM Licht AG*		667		33,642
ProSiebenSat.1 Media AG		1,773		78,988
RWE AG		3,801		163,246
SAP AG		7,381		570,024
Siemens AG		6,347		838,242
Sky Deutschland AG*		3,328		30,660
Telefonica Deutschland Holding AG*		2,349		19,424
ThyssenKrupp AG		3,706		108,039
United Internet AG		908		40,004
Volkswagen AG		247		63,855
				9,400,314
Guernsey — 0.1%
Friends Life Group Ltd.		10,186		54,964
Hong Kong — 2.7%
AIA Group Ltd.		96,800		486,473
ASM Pacific Technology Ltd.		1,700		18,578
Bank of East Asia Ltd.		10,894		45,190
BOC Hong Kong Holdings Ltd.		31,000		89,795
Cathay Pacific Airways Ltd.		10,000		18,683
Cheung Kong Holdings Ltd.		11,000		195,151
Cheung Kong Infrastructure Holdings Ltd.		6,000		41,378
CLP Holdings Ltd.		14,000		114,884
First Pacific Co., Ltd.		15,750		17,598
Galaxy Entertainment Group Ltd.		18,000		143,993
Hang Lung Properties Ltd.		19,000		58,591
Hang Seng Bank Ltd.		6,400		104,542
Henderson Land Development Co., Ltd.		9,075		53,101
HKT Trust & HKT Ltd.		18,000		21,204
Hong Kong & China Gas Co., Ltd.		49,145		107,543
Hong Kong Exchanges & Clearing Ltd.		9,230		172,086
Hutchison Whampoa Ltd.		17,000		232,504

	Number of Shares		Value†
Hong Kong — (continued)
Hysan Development Co., Ltd.		6,140	$	28,757
Kerry Properties Ltd.		3,509		12,270
Li & Fung Ltd.		50,000		74,061
MGM China Holdings Ltd.		8,400		29,155
MTR Corp., Ltd.		11,264		43,382
New World Development Co., Ltd.		46,324		52,717
Noble Group Ltd.		38,270		42,048
NWS Holdings Ltd.		12,295		22,812
PCCW Ltd.		33,068		19,712
Power Assets Holdings Ltd.		11,500		100,527
Shangri-La Asia Ltd.		16,666		26,105
Sino Land Co., Ltd.		28,212		46,447
SJM Holdings Ltd.		17,000		42,597
Sun Hung Kai Properties Ltd.		13,161		180,509
Swire Pacific Ltd., A Shares		5,000		61,545
Swire Properties Ltd.		9,336		27,284
The Link REIT		18,176		97,794
Wharf Holdings Ltd.		13,000		93,595
Wheelock & Co., Ltd.		7,000		29,218
Yue Yuen Industrial Holdings Ltd.		7,000		23,437
				2,975,266
Ireland — 0.8%
Anglo Irish Bank Corp. PLC~		3,146		0
Bank of Ireland*		177,465		60,022
CRH PLC*		6,071		155,786
Experian PLC		8,236		139,259
James Hardie Industries PLC		3,154		41,161
Kerry Group PLC, A Shares		1,174		88,175
Ryanair Holdings PLC ADR*		59		3,292
Shire PLC		4,642		363,053
				850,748
Israel — 0.5%
Bank Hapoalim BM		8,292		47,942
Bank Leumi Le-Israel BM*		11,337		44,238
Bezeq The Israeli Telecommunication Corp., Ltd.		15,011		28,128
Delek Group Ltd.		36		14,897
Israel Chemicals Ltd.		3,410		29,216
Mizrahi Tefahot Bank Ltd.		783		10,127
NICE Systems Ltd.		400		16,343
Teva Pharmaceutical Industries Ltd.		6,907		365,126
The Israel Corp. Ltd.*		16		9,115
				565,132
Italy — 2.5%
Assicurazioni Generali SpA		9,385		205,743
Atlantia SpA		3,091		88,121
Banca Monte Dei Paschi di Siena SPA*		34,821		67,468
Banco Popolare SC*		3,001		49,434
Enel Green Power SpA		13,747		38,928
Enel SpA		52,111		303,547
Eni SpA		20,408		558,335
Exor SpA		848		34,823
Fiat SpA*		6,877		67,894

140

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Italy — (continued)
Finmeccanica SpA*		3,179	$	30,232
Intesa Sanpaolo SpA		95,544		295,149
Intesa Sanpaolo SpA, RSP		4,624		12,296
Luxottica Group SpA		1,314		76,055
Mediobanca SpA*		4,539		45,247
Pirelli & C. SpA		1,674		26,865
Prysmian SpA		1,833		41,414
Saipem SpA		2,015		54,355
Snam Rete Gas SpA		17,071		102,851
Telecom Italia SpA		84,348		106,835
Telecom Italia SpA, RSP		55,911		55,237
Terna Rete Elettrica Nasionale SpA		11,628		61,332
UniCredit SpA		35,633		298,365
Unione di Banche Italiane SCpA		7,359		63,685
Unipolsai SPA		8,602		27,656
				2,711,867
Japan — 20.1%
ABC-Mart, Inc.		200		10,700
Acom Co., Ltd.*		3,200		15,225
Advantest Corp.		1,200		14,830
Aeon Co., Ltd.		4,900		60,267
AEON Financial Service Co., Ltd.		700		18,304
Aeon Mall Co., Ltd.		710		18,706
Air Water, Inc.		1,000		15,991
Aisin Seiki Co., Ltd.		1,400		55,693
Ajinomoto Co., Inc.		5,000		78,377
Alfresa Holdings Corp.		400		25,784
Amada Co., Ltd.		3,000		30,502
ANA Holdings, Ltd.		11,000		25,951
Aozora Bank Ltd.		10,000		32,871
Asahi Glass Co., Ltd.		7,000		41,252
Asahi Group Holdings Ltd.		3,200		100,449
Asahi Kasei Corp.		11,000		84,152
Asics Corp.		1,000		23,326
Astellas Pharma, Inc.		17,000		223,355
Bandai Namco Holdings, Inc.		1,700		39,805
Benesse Holdings, Inc.		700		30,369
Bridgestone Corp.		5,300		185,465
Brother Industries Ltd.		1,500		25,986
Calbee, Inc.		400		11,032
Canon, Inc.		9,300		302,579
Casio Computer Co., Ltd.		1,500		21,766
Central Japan Railway Co.		1,200		171,166
Chiyoda Corp.		1,000		12,112
Chubu Electric Power Co., Inc.		5,100		63,382
Chugai Pharmaceutical Co., Ltd.		1,800		50,728
Citizen Holdings Co., Ltd.		3,100		24,328
Credit Saison Co., Ltd.		1,500		31,213
Dai Nippon Printing Co., Ltd.		5,000		52,219
Daicel Corp.		2,000		19,111
Daido Steel Co., Ltd.		2,000		10,227
Daihatsu Motor Co., Ltd.		1,800		32,000
Daiichi Sankyo Co., Ltd.		5,700		106,342
Daikin Industries Ltd.		1,800		113,574
Daito Trust Construction Co., Ltd.		600		70,539

	Number of Shares		Value†
Japan — (continued)
Daiwa House Industry Co., Ltd.		5,000	$	103,647
Daiwa Securities Group, Inc.		13,000		112,541
Dena Co., Ltd.		700		9,466
Denso Corp.		4,000		190,909
Dentsu, Inc.		1,800		73,293
Don Quijote Holdings Co., Ltd.		400		22,309
East Japan Railway Co.		2,700		212,658
Eisai Co., Ltd.		2,000		83,787
Electric Power Development Co., Ltd.		1,000		32,476
FamilyMart Co., Ltd.		500		21,544
FANUC Corp.		1,500		258,674
Fast Retailing Co., Ltd.		400		131,603
Fuji Electric Co., Ltd.		4,000		18,953
Fuji Heavy Industries Ltd.		4,500		124,599
FUJIFILM Holdings Corp.		3,900		108,756
Fujitsu Ltd.		16,000		119,876
Fukuoka Financial Group, Inc.		6,000		28,962
Gree, Inc.		800		7,012
GungHo Online Entertainment, Inc.		3,000		19,367
Hakuhodo DY Holdings, Inc.		2,500		24,826
Hamamatsu Photonics K.K.		500		24,530
Hankyu Hanshin Holdings, Inc.		10,000		57,055
Hino Motors Ltd.		2,000		27,541
Hirose Electric Co., Ltd.		200		29,712
Hitachi Chemical Co., Ltd.		1,000		16,544
Hitachi Construction Machinery Co., Ltd.		1,000		19,920
Hitachi High-Technologies Corp.		500		11,895
Hitachi Ltd.		40,000		292,977
Hitachi Metals Ltd.		2,000		30,285
Hitamitsu Pharmaceutical Co., Ltd.		400		17,887
Hokuhoku Financial Group, Inc.		10,000		21,322
Hokuriku Electric Power Co.		1,200		15,908
Honda Motor Co., Ltd.		13,100		457,378
Hoya Corp.		3,500		116,292
Hulic Co., Ltd.		2,500		32,945
Ibiden Co., Ltd.		1,300		26,178
Idemitsu Kosan Co., Ltd.		400		8,691
IHI Corp.		12,000		55,910
Iida Group Holdings CO Ltd.		1,000		15,192
Inpex Corp.		7,200		109,452
Isetan Mitsukoshi Holdings Ltd.		2,500		32,575
Isuzu Motors Ltd.		9,000		59,523
ITOCHU Corp.		11,800		151,540
Itochu Technology Solutions Corp.		300		13,045
J. Front Retailing Co., Ltd.		4,000		28,074
Japan Display, Inc.*		3,000		18,420
Japan Exchange Group, Inc.		2,000		49,257
Japan Prime Realty Investment Corp.		5		17,941
Japan Real Estate Investment Corp.		10		58,240
Japan Retail Fund Investment Corp.		20		44,973
Japan Tobacco, Inc.		8,800		320,798
JFE Holdings, Inc.		3,700		76,370
JGC Corp.		2,000		60,767
JSR Corp.		1,100		18,872
JTEKT Corp.		1,500		25,275
JX Holdings, Inc.		17,690		94,645

141

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
Kajima Corp.		7,000	$	30,956
Kakaku.Com, Inc.		1,100		19,273
Kamigumi Co., Ltd.		2,000		18,400
Kaneka Corp.		2,000		12,517
Kansai Paint Co., Ltd.		2,000		33,424
Kao Corp.		4,200		165,297
Kawasaki Heavy Industries Ltd.		10,000		38,103
KDDI Corp.		4,700		286,672
Keikyu Corp.		4,000		35,931
Keio Corp.		5,000		39,287
Keisei Electric Railway Co., Ltd.		2,000		19,920
Keyence Corp.		341		148,764
Kikkoman Corp.		1,000		20,828
Kintetsu Corp.		13,000		47,352
Kirin Holdings Co., Ltd.		7,000		101,091
Kobe Steel Ltd.		26,000		39,011
Koito Manufacturing Co., Ltd.		1,000		25,616
Komatsu Ltd.		7,300		169,484
Konami Corp.		600		13,261
Konica Minolta, Inc.		4,000		39,524
Kubota Corp.		9,000		127,575
Kuraray Co., Ltd.		2,400		30,419
Kurita Water Industries Ltd.		800		18,534
Kyocera Corp.		2,600		123,398
Kyowa Hakko Kirin Co., Ltd.		2,000		27,067
Kyushu Electric Power Co., Inc.		2,900		32,663
Lawson, Inc.		600		45,013
LIXIL Group Corp.		2,300		62,072
M3, Inc.		1,000		15,912
Mabuchi Motor Co., Ltd.		200		15,162
Makita Corp.		800		49,435
Marubeni Corp.		13,000		95,089
Marui Group Co., Ltd.		1,500		14,407
Maruichi Steel Tube Ltd.		300		8,055
Mazda Motor Corp.		23,000		107,843
McDonald’s Holdings Co., Ltd. (Japan)		700		19,658
Medipal Holdings Corp.		1,500		21,263
MEIJI Holdings Co., Ltd.		500		33,118
Miraca Holdings, Inc.		400		19,387
Mitsubishi Chemical Holdings Corp.		12,000		53,186
Mitsubishi Corp.		11,600		241,263
Mitsubishi Electric Corp.		16,000		197,424
Mitsubishi Estate Co., Ltd.		10,000		246,878
Mitsubishi Gas Chemical Co., Inc.		3,000		19,190
Mitsubishi Heavy Industries Ltd.		24,000		149,726
Mitsubishi Logistics Corp.		1,000		14,975
Mitsubishi Materials Corp.		7,000		24,530
Mitsubishi Motors Corp.		5,200		57,387
Mitsubishi Tanabe Pharma Corp.		1,900		28,452
Mitsubishi UFJ Financial Group, Inc.		102,200		626,486
Mitsubishi UFJ Lease & Finance Co., Ltd.		4,600		26,427
Mitsui & Co., Ltd.		14,400		230,843
Mitsui Chemicals, Inc.		5,000		13,672
Mitsui Fudosan Co., Ltd.		7,000		236,040
Mitsui OSK Lines Ltd.		10,000		37,214
Mizuho Financial Group, Inc.		186,380		382,676

	Number of Shares		Value†
Japan — (continued)
MS&AD Insurance Group Holdings, Inc.		4,290	$	103,624
Murata Manufacturing Co., Ltd.		1,600		149,742
Nabtesco Corp.		700		15,478
Nagoya Railroad Co., Ltd.		7,000		27,916
NEC Corp.		21,000		66,956
Nexon Co. Ltd.		1,100		10,500
NGK Insulators Ltd.		2,000		45,407
NGK Spark Plug Co., Ltd.		1,000		28,212
NH Foods Ltd.		1,000		19,535
NHK Spring Co., Ltd.		1,200		11,253
Nidec Corp.		1,600		98,175
Nikon Corp.		2,900		45,659
Nintendo Co., Ltd.		800		95,750
Nippon Building Fund, Inc.		10		58,437
Nippon Electric Glass Co., Ltd.		2,000		11,648
Nippon Express Co., Ltd.		8,000		38,774
Nippon Paint Co., Ltd.		1,000		21,164
Nippon Prologis REIT, Inc.		10		23,316
Nippon Steel & Sumitomo Metal Corp.		59,170		189,241
Nippon Telegraph & Telephone Corp.		3,100		193,335
Nippon Yusen K.K.		13,000		37,471
Nissan Motor Co., Ltd.		19,400		184,032
Nisshin Seifun Group, Inc.		1,650		19,692
Nissin Foods Holdings Co., Ltd.		500		25,714
Nitori Holdings Co., Ltd.		600		32,812
Nitto Denko Corp.		1,200		56,230
NKSJ Holdings, Inc.		2,825		76,073
NOK Corp.		1,000		20,088
Nomura Holdings, Inc.		28,500		201,713
Nomura Real Estate Holdings, Inc.		1,000		18,923
Nomura Research Institute Ltd.		600		18,893
NSK Ltd.		4,000		52,001
NTT Data Corp.		1,000		38,399
NTT DOCOMO, Inc.		12,600		215,421
NTT Urban Development Corp.		1,000		11,253
Obayashi Corp.		6,000		42,821
Odakyu Electric Railway Co., Ltd.		5,000		48,122
Oji Holdings Corp.		6,000		24,698
Olympus Corp.*		2,000		68,901
Omron Corp.		1,600		67,440
Ono Pharmaceutical Co., Ltd.		600		52,831
Oracle Corp. Japan		200		8,746
Oriental Land Co., Ltd.		400		68,526
ORIX Corp.		10,800		178,996
Osaka Gas Co., Ltd.		16,000		67,282
Otsuka Corp.		300		14,540
Otsuka Holdings Co., Ltd.		3,000		92,987
Panasonic Corp.		17,800		216,822
Park24 Co., Ltd.		800		14,546
Rakuten, Inc.		6,200		80,113
Resona Holdings, Inc.		17,800		103,667
Ricoh Co., Ltd.		5,000		59,573
Rinnai Corp.		300		28,962
Rohm Co., Ltd.		900		51,616
Sankyo Co., Ltd.		400		15,379

142

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
Sanrio Co., Ltd.		300	$	8,715
Santen Pharmaceutical Co., Ltd.		600		33,759
SBI Holdings, Inc.		1,710		20,931
Secom Co., Ltd.		1,700		103,874
Sega Sammy Holdings, Inc.		1,200		23,608
Seiko Epson Corp.		1,100		46,799
Sekisui Chemical Co., Ltd.		3,000		34,737
Sekisui House Ltd.		4,000		54,844
Seven & I Holdings Co., Ltd.		6,200		261,207
Seven Bank Ltd.		5,300		21,659
Sharp Corp.*		11,000		35,289
Shikoku Electric Power Co., Inc.*		1,300		18,145
Shimadzu Corp.		2,000		18,341
Shimamura Co., Ltd.		200		19,663
Shimano, Inc.		600		66,571
Shimizu Corp.		5,000		35,388
Shin-Etsu Chemical Co., Ltd.		3,200		194,518
Shinsei Bank Ltd.		14,000		31,509
Shionogi & Co., Ltd.		2,100		43,822
Shiseido Co., Ltd.		3,200		58,343
Showa Shell Sekiyu K.K.		1,000		11,362
SMC Corp.		400		107,043
SoftBank Corp.		7,700		573,329
Sony Corp.		8,300		137,808
Sony Financial Holdings, Inc.		1,200		20,469
Stanley Electric Co., Ltd.		1,300		33,891
Sumitomo Chemical Co., Ltd.		12,000		45,368
Sumitomo Corp.		9,500		128,286
Sumitomo Dainippon Pharma Co., Ltd.		1,400		16,100
Sumitomo Electric Industries Ltd.		5,900		82,992
Sumitomo Heavy Industries Ltd.		3,000		14,274
Sumitomo Metal Mining Co., Ltd.		4,000		64,952
Sumitomo Mitsui Financial Group, Inc.		10,300		431,501
Sumitomo Mitsui Trust Holdings, Inc.		25,430		116,224
Sumitomo Realty & Development Co., Ltd.		3,000		128,730
Sumitomo Rubber Industries Ltd.		1,200		17,318
Suntory Beverage & Food Ltd.		1,000		39,238
Suruga Bank Ltd.		2,000		38,813
Suzuken Co., Ltd.		400		14,886
Suzuki Motor Corp.		2,800		87,700
Sysmex Corp.		1,000		37,560
T&D Holdings, Inc.		5,100		69,322
Taiheiyo Cement Corp.		8,000		32,220
Taisei Corp.		8,000		44,302
Taisho Pharmaceutical Holdings Co., Ltd.		300		21,884
Taiyo Nippon Sanso Corp.		3,000		26,563
Takashimaya Co., Ltd.		2,000		19,407
Takeda Pharmaceutical Co., Ltd.		6,500		301,500
TDK Corp.		900		42,199
Teijin Ltd.		6,000		15,044
Terumo Corp.		2,200		49,188
The Bank of Kyoto Ltd.		3,000		27,274
The Bank of Yokohama Ltd.		10,000		57,549
The Chiba Bank Ltd.		5,000		35,289
The Chugoku Bank Ltd.		1,000		15,379

	Number of Shares		Value†
Japan — (continued)
The Chugoku Electric Power Co., Inc.		2,100	$	28,648
The Dai-ichi Life Insurance Co., Ltd.		7,200		107,248
The Gunma Bank Ltd.		3,000		17,738
The Hachijuni Bank Ltd.		4,000		24,757
The Hiroshima Bank Ltd.		4,000		19,111
The Iyo Bank Ltd.		2,000		20,216
The Joyo Bank Ltd.		6,000		31,983
The Kansai Electric Power Co., Inc.*		5,900		55,619
The Shizuoka Bank Ltd.		5,000		54,045
The Yokohama Rubber Co., Ltd.		2,000		17,294
THK Co., Ltd.		1,000		23,572
Tobu Railway Co., Ltd.		9,000		47,086
Toho Co., Ltd.		900		21,109
Toho Gas Co., Ltd.		3,000		16,495
Tohoku Electric Power Co., Inc.		3,100		36,384
Tokio Marine Holdings, Inc.		5,400		177,610
Tokyo Electric Power Co., Inc.*		12,200		50,821
Tokyo Electron Ltd.		1,400		94,637
Tokyo Gas Co., Ltd.		20,000		116,875
Tokyo Tatemono Co., Ltd.		3,000		27,748
Tokyu Corp.		10,000		70,875
Tokyu Fudosan Holdings Corp.		4,000		31,548
TonenGeneral Sekiyu K.K.		2,000		18,992
Toppan Printing Co., Ltd.		4,000		30,956
Toray Industries, Inc.		11,000		72,316
Toshiba Corp.		32,000		149,410
TOTO Ltd.		2,000		26,948
Toyo Seikan Group Holdings Ltd.		1,000		15,360
Toyo Suisan Kaisha Ltd.		1,000		30,847
Toyoda Gosei Co., Ltd.		400		8,308
Toyota Industries Corp.		1,200		61,952
Toyota Motor Corp.		22,100		1,327,243
Toyota Tsusho Corp.		1,800		51,759
Trend Micro, Inc.		800		26,336
Unicharm Corp.		1,000		59,592
United Urban Investment Corp.		19		30,665
USS Co., Ltd.		2,200		37,548
West Japan Railway Co.		1,300		57,233
Yahoo! Japan Corp.		10,400		48,045
Yakult Honsha Co., Ltd.		700		35,447
Yamada Denki Co., Ltd.		8,300		29,577
Yamaguchi Financial Group, Inc.		2,000		21,085
Yamaha Corp.		1,600		25,286
Yamaha Motor Co., Ltd.		2,400		41,293
Yamato Holdings Co., Ltd.		2,800		58,015
Yamato Kogyo Co., Ltd.		300		8,795
Yamazaki Baking Co., Ltd.		1,000		12,487
Yaskawa Electric Corp.		2,000		24,224
Yokogawa Electric Corp.		2,000		25,290
				22,202,534
Jersey — 0.1%
Randgold Resources Ltd.		735		61,296
Luxembourg — 0.4%
Altice S.A.*		487		33,929

143

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Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Luxembourg — (continued)
ArcelorMittal		8,260	$	122,492
Millicom International Cellular S.A.		489		44,790
RTL Group S.A.		294		32,705
SES S.A.		2,387		90,538
Tenaris S.A.		3,987		93,902
				418,356
Macau — 0.0%
Wynn Macau Ltd.		12,400		48,637
Mexico — 0.0%
Fresnillo PLC		1,200		17,908
Netherlands — 5.0%
Aegon N.V.		14,987		130,805
Akzo Nobel N.V.		2,022		151,588
ASML Holding N.V.		2,825		263,081
CNH Industrial N.V.		7,320		75,175
Corio N.V.		573		29,266
Delta Lloyd N.V.		1,591		40,390
European Aeronautic Defence & Sapce Co. N.V.		4,734		317,242
Fugro N.V.		546		31,262
Gemalto N.V.		668		69,242
Heineken Holdings N.V.		898		59,041
Heineken N.V.		1,880		134,970
ING Groep N.V.*		31,051		436,236
Koninklijke Ahold NV		7,270		136,481
Koninklijke Boskalis Westminster N.V.		632		36,247
Koninklijke DSM N.V.		1,406		102,403
Koninklijke KPN N.V.*		25,159		91,672
Koninklijke Philips N.V.		7,942		252,028
Koninklijke Vopak N.V.		584		28,548
OCI N.V.*		783		30,557
QIAGEN N.V.*		1,994		48,328
Randstad Holding N.V.		923		50,036
Reed Elsevier N.V.		5,727		131,353
Royal Dutch Shell PLC, A Shares		31,387		1,299,108
Royal Dutch Shell PLC, B Shares		19,939		867,588
TNT Express N.V.		3,439		31,127
Unilever N.V.		13,379		585,411
Wolters Kluwer N.V.		2,609		77,238
Ziggo N.V.		1,178		54,472
				5,560,895
New Zealand — 0.1%
Auckland International Airport Ltd.		7,482		25,548
Contact Energy Ltd.		2,990		13,901
Fletcher Building Ltd.		4,795		36,987
Ryman Healthcare Ltd.		2,831		21,193
Telecom Corp. of New Zealand Ltd.		16,060		37,684
Xero Ltd.*		511		11,628
				146,941
Norway — 0.7%
Aker Solutions ASA		1,631		28,345
DNB ASA		7,620		139,384

	Number of Shares		Value†
Norway — (continued)
Gjensidige Forsikring ASA		1,418	$	25,429
Norsk Hydro ASA		10,203		54,609
Orkla ASA		6,430		57,289
Statoil ASA		8,879		272,717
Telenor ASA		6,070		138,246
Yara International ASA		1,592		79,758
				795,777
Portugal — 0.2%
Banco Espirito Santo S.A.*		27,017		22,270
EDP — Energias de Portugal S.A.		16,826		84,418
Galp Energia SGPS, S.A.		2,726		49,944
Jeronimo Martins SGPS, S.A.		2,107		34,665
Portugal Telecom SGPS, S.A.		4,543		16,647
				207,944
Singapore — 1.4%
Ascendas Real Estate Investment Trust		15,000		27,669
CapitaCommercial Trust		16,000		21,814
CapitaLand Ltd.		23,000		59,026
CapitaMall Trust		21,700		34,371
City Developments Ltd.		3,000		24,613
ComfortDelGro Corp. Ltd.		14,000		28,070
DBS Group Holdings Ltd.		14,289		191,949
Genting Singapore PLC		54,000		57,599
Global Logistic Properties Ltd.		26,000		56,300
Golden Agri-Resources Ltd.		65,000		28,932
Hutchison Port Holdings Trust		35,100		25,272
Jardine Cycle & Carriage Ltd.		1,000		35,496
Keppel Corp. Ltd.		11,600		100,380
Keppel Land Ltd.		5,431		14,722
Oversea-Chinese Banking Corp. Ltd.		20,530		157,239
Sembcorp Industries Ltd.		9,000		38,760
SembCorp Marine Ltd.		7,000		23,017
Singapore Airlines Ltd.		4,000		33,267
Singapore Exchange Ltd.		6,000		33,443
Singapore Press Holdings Ltd.		15,000		50,164
Singapore Technologies Engineering Ltd.		12,000		36,571
Singapore Telecommunications Ltd.		63,000		194,522
StarHub Ltd.		5,000		16,721
United Overseas Bank Ltd.		10,609		191,607
UOL Group Ltd.		4,128		21,585
Wilmar International Ltd.		17,000		43,492
				1,546,601
Spain — 3.6%
Abertis Infraestructuras S.A.		3,451		79,411
ACS Actividades de Construccion y Servicios S.A.		1,343		61,422
Amadeus IT Holding S.A.		3,040		125,380
Banco Bilbao Vizcaya Argentaria S.A.		47,224		601,956
Banco de Sabadell S.A.		26,016		88,774
Banco Popular Espanol S.A.		13,382		89,421
Banco Santander S.A.		94,515		987,470
Bankia S.A.*		36,141		70,075

144

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Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Spain — (continued)
CaixaBank		13,281	$	81,963
Caixabank SA I — 2014 Shares~		152		938
Distribuidora Internacional de Alimentacion S.A.		4,084		37,602
Enagas S.A.		1,740		55,991
Ferrovial S.A.		3,300		73,496
Gas Natural SDG S.A.		2,914		92,032
Grifols S.A.		1,252		68,429
Iberdrola S.A.		40,815		312,023
Inditex S.A.		1,767		271,958
Mapfre S.A.		8,177		32,594
Red Electrica Corporacion S.A.		908		83,054
Repsol S.A.		7,220		190,411
Telefonica S.A.		32,853		563,220
Zardoya Otis S.A.		1,485		26,434
				3,994,054
Sweden — 3.0%
Alfa Laval AB		2,688		69,276
Assa Abloy AB, B Shares		2,770		140,955
Atlas Copco AB, A Shares		5,275		152,450
Atlas Copco AB, B Shares		3,351		89,523
Boliden AB		1,883		27,323
Electrolux AB, B Shares		2,141		54,154
Elekta AB, B Shares		3,250		41,345
Getinge AB, B Shares		1,448		38,055
Hennes & Mauritz AB, B Shares		7,753		338,825
Hexagon AB, B Shares		2,081		67,087
Husqvarna AB, B Shares		2,834		22,035
Industrivarden AB, C Shares		1,227		24,241
Investment AB Kinnevik, B Shares		1,832		78,089
Investor AB, B Shares		3,749		140,667
Lundin Petroleum AB*		1,488		30,109
Nordea Bank AB		24,780		349,732
Sandvik AB		8,213		112,227
Securitas AB, B Shares		1,984		23,532
Skandinaviska Enskilda Banken AB, A Shares		12,133		162,160
Skanska AB, B Shares		2,985		68,130
SKF AB, B Shares		3,338		85,179
Svenska Cellulosa AB SCA, B Shares		4,703		122,545
Svenska Handelsbanken AB, A Shares		4,017		196,655
Swedbank AB, A Shares		7,285		193,204
Swedish Match AB		1,496		51,945
Tele2 AB, B Shares		2,927		34,476
Telefonaktiebolaget LM Ericsson, B Shares		24,851		300,337
TeliaSonera AB		18,708		136,666
Volvo AB, B Shares		11,928		164,329
				3,315,251
Switzerland — 9.7%
ABB Ltd.*		17,664		406,742
Actelion Ltd.*		867		109,695
Adecco S.A.*		1,364		112,282
Aryzta AG*		739		70,000
Baloise Holding AG		408		48,078
Barry Callebaut AG*		17		23,100

	Number of Shares		Value†
Switzerland — (continued)
Cie Financiere Richemont S.A.		4,271	$	448,147
Coca-Cola HBC AG*		1,371		31,488
Credit Suisse Group AG*		12,197		348,800
EMS-Chemie Holding AG		65		25,947
Geberit AG		318		111,630
Givaudan S.A.		74		123,417
Glencore PLC		85,768		477,851
Holcim Ltd.		1,881		165,340
Julius Baer Group Ltd.		1,895		78,125
Kuehne + Nagel International AG		444		59,080
Lindt & Spruengli AG		1		61,773
Lindt & Spruengli AG, Participation Certificates		7		35,631
Lonza Group AG*		459		49,948
Nestle S.A.		25,814		1,999,799
Novartis AG		18,413		1,667,302
Pargesa Holding S.A.		272		24,430
Partners Group Holding AG		138		37,721
Roche Holding AG		5,624		1,677,433
Schindler Holding AG		145		21,861
Schindler Holding AG, Participation Certificates		349		53,050
SGS S.A.		43		103,039
Sika AG		18		73,599
Sonova Holding AG		427		65,148
STMicroelectronics N.V.		4,919		44,132
Sulzer AG*		188		26,373
Swiss Life Holding AG		272		64,503
Swiss Prime Site AG		430		35,639
Swiss Re AG*		2,781		247,430
Swisscom AG		183		106,379
Syngenta AG		758		282,327
The Swatch Group AG		253		152,776
The Swatch Group AG, Registered Shares		366		40,653
Transocean Ltd.*		3,010		135,294
UBS AG*		29,232		536,316
Wolseley PLC		2,086		114,346
Zurich Insurance Group AG*		1,199		361,404
				10,658,028
United Kingdom — 18.5%
3i Group PLC		8,442		58,065
Aberdeen Asset Management PLC		7,687		59,713
Admiral Group PLC		1,518		40,241
Aggreko PLC		2,157		60,909
AMEC PLC		2,494		51,859
Anglo American PLC		11,455		280,337
Antofagasta PLC		3,403		44,436
ARM Holdings PLC		11,309		170,510
ASOS PLC*		450		22,796
Associated British Foods PLC		2,872		149,862
AstraZeneca PLC		10,209		758,354
Aviva PLC		23,837		208,256
Babcock International Group PLC		4,013		79,804
BAE Systems PLC		25,041		185,519
Barclays PLC		131,396		478,523
BG Group PLC		27,350		578,061

145

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
United Kingdom — (continued)
BHP Billiton PLC		17,036	$	550,889
BP PLC		147,830		1,302,671
British American Tobacco PLC		15,094		898,428
British Land Co. PLC		7,874		94,665
British Sky Broadcasting Group PLC		7,899		122,205
BT Group PLC		64,048		421,893
Bunzl PLC		2,885		80,084
Burberry Group PLC		3,582		90,911
Capita PLC		5,526		108,284
Carnival PLC		1,577		59,591
Centrica PLC		40,557		216,972
Cobham PLC		8,466		45,248
Compass Group PLC		14,614		254,354
Croda International PLC		1,214		45,729
Diageo PLC		20,100		641,885
Direct Line Insurance Group PLC		10,377		47,914
easyJet PLC		1,334		31,163
G4S PLC		12,521		54,685
GKN PLC		13,828		85,928
GlaxoSmithKline PLC		39,243		1,050,384
Hammerson PLC		5,215		51,764
Hargreaves Lansdown PLC		1,892		40,086
HSBC Holdings PLC		150,748		1,529,615
ICAP PLC		4,325		28,127
IMI PLC		1,958		49,828
Imperial Tobacco Group PLC		7,928		356,836
Inmarsat PLC		3,494		44,697
InterContinental Hotels Group PLC		2,221		92,022
International Consolidated Airlines Group S.A. (London Main Market Exchange)*		2,764		17,526
International Consolidated Airlines Group S.A. (Spanish Stock Exchange)*		5,668		35,942
Intertek Group PLC		1,257		59,137
Intu Properties PLC		8,491		45,280
Investec PLC		4,543		41,906
ITV PLC		30,751		93,781
J. Sainsbury PLC		9,762		52,709
Johnson Matthey PLC		1,610		85,415
Kingfisher PLC		18,641		114,528
Land Securities Group PLC		6,649		117,887
Legal & General Group PLC		47,917		184,839
Lloyds Banking Group PLC*		457,050		580,777
London Stock Exchange Group PLC		1,386		47,606
Marks & Spencer Group PLC		12,979		94,446
Meggitt PLC		5,688		49,256
Melrose Industries PLC		8,437		37,570
National Grid PLC		30,185		433,930
Next PLC		1,232		136,521
Old Mutual PLC		38,468		130,153
Pearson PLC		6,795		134,197
Persimmon PLC*		2,549		55,533
Petrofac Ltd.		1,906		39,241
Prudential PLC		20,685		474,716
Reckitt Benckiser Group PLC		5,241		457,439
Reed Elsevier PLC		9,621		154,774

	Number of Shares		Value†
United Kingdom — (continued)
Rexam PLC*		5,992	$	54,862
Rio Tinto PLC		10,250		545,286
Rolls-Royce Holdings PLC*		15,505		283,660
Royal Bank of Scotland Group PLC*		19,867		111,657
Royal Mail PLC		5,386		45,996
RSA Insurance Group PLC		7,501		60,951
SABMiller PLC		7,875		456,608
Schroders PLC		799		34,267
Segro PLC		6,316		37,313
Severn Trent PLC		2,104		69,567
Smith & Nephew PLC		7,021		124,843
Smiths Group PLC		3,378		74,981
Sports Direct International PLC*		2,156		26,068
SSE PLC		7,612		204,135
Standard Chartered PLC		19,700		402,550
Standard Life PLC		19,605		125,517
Subsea 7 S.A.		1,806		33,683
Tate & Lyle PLC		3,269		38,295
Tesco PLC		64,072		311,632
The Sage Group PLC		8,870		58,307
The Weir Group PLC		1,674		75,031
Travis Perkins PLC		2,061		57,775
TUI Travel PLC		4,508		30,705
Tullow Oil PLC		7,372		107,681
Unilever PLC		10,373		470,612
United Utilities Group PLC		5,902		89,088
Vodafone Group PLC		211,637		706,278
W.M. Morrison Supermarkets PLC		17,966		56,390
Whitbread PLC		1,474		111,221
William Hill PLC		7,259		40,747
WPP PLC		10,934		238,395
				20,383,313
TOTAL COMMON STOCKS (Cost $81,657,262)				109,480,663
PREFERRED STOCKS — 0.6%
Germany — 0.6%
Bayerische Motoren Werke AG		477		45,727
Fuchs Petrolub SE		598		27,038
Henkel AG & Co. KGaA		1,395		161,276
Porsche Automobil Holding SE		1,203		125,341
Volkswagen AG		1,169		307,017
				666,399
United Kingdom — 0.0%
Rolls-Royce Holdings PLC, Series C		1,981,592		3,391
TOTAL PREFERRED STOCKS (Cost $352,881)				669,790
RIGHTS — 0.0%
Hong Kong — 0.0%
HKT Trust and HKT Ltd. Exp: 07/15/14~ (Cost $0)		3,240		957

146

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
WARRANTS — 0.0%
Belgium — 0.0%
Anheuser-Busch InBev N.V.02/27/13*~		256	$	0
Spain — 0.0%
Repsol SA*		7,220		4,914
TOTAL WARRANTS (Cost $4,884)				4,914
SHORT-TERM INVESTMENTS — 0.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $203,356)		203,356		203,356
TOTAL INVESTMENTS — 100.0% (Cost $82,218,383)			$	110,359,680

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at June 30, 2014 is $1,895.

ADR — American Depository Receipt.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Advertising		0.4%		$	472,130
Aerospace & Defense		0.8%			859,276
Agriculture		1.6%			1,700,431
Airlines		0.2%			216,446
Apparel		0.8%			860,018
Auto Manufacturers		3.7%			4,005,164
Auto Parts & Equipment		1.3%			1,364,790
Banks		14.6%			15,958,568
Beverages		2.4%			2,678,113
Biotechnology		0.3%			348,057
Building & Real Estate		0.1%			55,533
Building Materials		1.3%			1,369,567
Chemicals		3.7%			4,054,973
Commercial Services		1.5%			1,620,238
Computers		0.4%			466,509
Cosmetics & Personal Care		0.6%			690,740
Distribution & Wholesale		0.9%			1,008,337
Diversified		—%	+		27,669
Diversified Financial Services		1.5%			1,634,534
Diversified Operations		0.2%			188,937
Electric		2.8%			3,098,442
Electrical Components & Equipment		1.1%			1,246,353
Electronics		1.2%			1,319,397
Energy-Alternate Sources		0.1%			129,438
Engineering & Construction		1.3%			1,447,218
Entertainment		0.2%			171,072
Environmental Control		—%	+		18,534
Food		5.0%			5,417,156

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Food Service		0.2%		$	254,354
Forest Products & Paper		0.2%			260,385
Gas		1.1%			1,153,807
Hand & Machine Tools		0.4%			386,141
Healthcare Products		0.9%			933,273
Healthcare Services		0.2%			216,375
Holding Companies		0.6%			630,120
Home Builders		0.2%			193,228
Home Furnishings		0.4%			444,073
Hotels & Resorts		0.3%			319,359
Household Products & Wares		0.6%			615,788
Industrial		0.3%			283,660
Insurance		5.2%			5,723,702
Internet		0.3%			343,127
Investment Companies		0.4%			416,014
Iron & Steel		0.6%			687,754
Leisure Time		0.2%			265,454
Lodging		0.4%			436,946
Machinery — Construction & Mining		0.4%			431,377
Machinery — Diversified		1.1%			1,230,161
Media		1.1%			1,162,117
Metal Fabricate/Hardware		0.4%			415,650
Mining		3.1%			3,426,456
Miscellaneous Manufacturing		1.2%			1,352,189
Mixed Industrial/Office		0.5%			525,603
Office & Business Equipment		0.4%			408,951
Oil & Gas		6.9%			7,559,025
Oil & Gas Services		0.2%			268,389
Packaging and Containers		0.1%			112,697
Pharmaceuticals		8.4%			9,196,540
Pipelines		—%	+		42,652
Real Estate		1.6%			1,736,600
Real Estate Development		0.1%			125,206
Real Estate Investment Trusts		0.9%			1,008,172
Retail		2.9%			3,193,616
Semiconductors		0.7%			748,707
Shipbuilding		—%	+		39,474
Software		0.8%			886,749
Storage & Warehousing		—%	+		14,975
Strip Centers		—%	+		27,800
Telecommunications		4.8%			5,248,965
Textiles		0.1%			117,779
Toys, Games & Hobbies		0.1%			144,270
Transportation		1.7%			1,901,999
Unknown		1.7%			1,842,043
Venture Capital		0.1%			58,065
Water		0.2%			263,236
		100.0%		$	109,480,663

+ Rounded.

147

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Developed International Index Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Australia	$	8,441,129	$	8,441,129	$	—	$	—
Austria		288,902		288,902		—		—
Belgium		1,346,215		1,346,215		—		—
Bermuda		124,112		124,112		—		—
China		161,502		161,502		—		—
Denmark		1,641,801		1,641,801		—		—
Finland		934,277		934,277		—		—
France		10,626,899		10,626,899		—		—
Germany		9,400,314		9,400,314		—		—
Guernsey		54,964		54,964		—		—
Hong Kong		2,975,266		2,975,266		—		—
Ireland		850,748		850,748		—		—
Israel		565,132		565,132		—		—
Italy		2,711,867		2,711,867		—		—
Japan		22,202,534		22,202,534		—		—
Jersey		61,296		61,296		—		—
Luxembourg		418,356		418,356		—		—
Macau		48,637		48,637		—		—
Mexico		17,908		17,908		—		—
Netherlands		5,560,895		5,560,895		—		—
New Zealand		146,941		146,941		—		—
Norway		795,777		795,777		—		—
Portugal		207,944		207,944		—		—
Singapore		1,546,601		1,546,601		—		—
Spain		3,993,116		3,993,116		938		—
Sweden		3,315,251		3,315,251		—		—
Switzerland		10,658,028		10,658,028		—		—
United Kingdom		20,383,313		20,383,313		—		—
PREFERRED STOCKS
Germany		666,399		666,399		—		—
United Kingdom		3,391				3,391		—
RIGHTS		957		—		957		—
WARRANTS		4,914		4,914		—		—
SHORT-TERM INVESTMENTS		203,356		203,356		—		—
TOTAL INVESTMENTS		110,359,680		110,354,394		5,286		—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

148

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Schedule of Investments — June 30, 2014 (Unaudited)

International Equity Fund

	Number of Shares		Value†
COMMON STOCKS — 95.8%
Australia — 2.7%
CSL Ltd.		86,351	$	5,418,820
Ramsay Health Care Ltd.		127,505		5,470,512
				10,889,332
Brazil — 1.3%
Cielo S.A.		250,754		5,169,425
Canada — 7.5%
Alimentation Couche Tard, Inc.		137,652		3,770,740
Bank of Nova Scotia		121,992		8,133,181
Enbridge, Inc.		173,955		8,253,916
Goldcorp, Inc.		171,258		4,779,592
Shaw Communications, Inc., Class B		77,179		1,978,930
Silver Wheaton Corp.		104,588		2,752,290
				29,668,649
China — 4.7%
Baidu, Inc. ADR*		29,433		5,498,379
Sands China Ltd.		1,129,306		8,531,284
The Tencent Holdings Ltd.		306,440		4,673,463
				18,703,126
Denmark — 3.0%
Novo Nordisk A/S, B Shares		260,312		11,980,897
France — 7.9%
Air Liquide S.A.		6,210		838,431
Bureau Veritas S.A.		291,943		8,103,087
Essilor International S.A.		59,296		6,288,477
Hermes International		10,973		4,049,327
L’Oreal S.A.		31,430		5,416,220
Legrand S.A.		45,639		2,792,522
Pernod Ricard S.A.		32,245		3,872,226
				31,360,290
Hong Kong — 2.8%
Cheung Kong Infrastructure Holdings Ltd.		286,990		1,979,203
Galaxy Entertainment Group Ltd.		558,018		4,463,914
The Link REIT		851,386		4,580,769
				11,023,886
India — 11.0%
HDFC Bank Ltd.~		1,007,018		14,082,681
HDFC Bank Ltd. ADR		696		32,587
Hindustan Unilever Ltd.		246,723		2,544,760
Housing Development Finance Corp.		1,046,278		17,266,327
ITC Ltd.		1,793,081		9,690,597
				43,616,952
Ireland — 0.9%
Paddy Power PLC		54,225		3,564,015
Italy — 0.4%
Luxottica Group SpA		29,032		1,680,382
Japan — 1.3%
Daito Trust Construction Co., Ltd.		42,500		4,996,545

	Number of Shares		Value†
Mexico — 2.3%
Fresnillo PLC		353,026	$	5,268,323
Wal-Mart de Mexico S.A.B de C.V., Series V		1,371,231		3,676,064
				8,944,387
Netherlands — 7.0%
Core Laboratories N.V.		61,635		10,296,743
Unilever N.V.		404,123		17,682,802
				27,979,545
South Africa — 1.2%
Naspers Ltd., N Shares		40,418		4,758,189
Spain — 1.5%
Grifols S.A.		106,613		5,827,000
Switzerland — 15.1%
Cie Financiere Richemont S.A.		36,797		3,861,029
DKSH Holding AG		71,795		5,460,727
Lindt & Spruengli AG, Participation Certificates		1,142		5,813,022
Nestle S.A.		220,932		17,115,504
Roche Holding AG		48,796		14,554,062
SGS S.A.		3,881		9,299,870
UBS AG*		214,377		3,933,146
				60,037,360
United Kingdom — 18.5%
British American Tobacco PLC		395,602		23,547,093
Diageo PLC		324,998		10,378,667
Domino’s Pizza UK & IRL PLC		402,463		3,609,163
Persimmon PLC*		227,122		4,948,082
Reckitt Benckiser Group PLC		135,087		11,790,520
Rolls-Royce Holdings PLC*		355,198		6,498,266
SABMiller PLC		216,255		12,538,882
				73,310,673
United States — 6.7%
Philip Morris International, Inc.		221,294		18,657,297
The priceline.com, Inc.*		6,624		7,968,672
				26,625,969
TOTAL COMMON STOCKS (Cost $287,776,534)				380,136,622
PREFERRED STOCKS — 1.0%
Brazil — 1.0%
Itau Unibanco Holding S.A. ADR		261,270		3,757,063
United Kingdom — 0.0%
Rolls-Royce Holdings PLC, Series C~		48,681,932		83,314
TOTAL PREFERRED STOCKS (Cost $3,215,808)				3,840,377

149

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Schedule of Investments — June 30, 2014 (Unaudited)

International Equity Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 3.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $12,837,483)		12,837,483	$	12,837,483
TOTAL INVESTMENTS — 100.0% (Cost $303,829,825)			$	396,814,482

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at June 30, 2014 is $14,165,995.

ADR — American Depository Receipt.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

Country Weightings as of 06/30/2014††
United Kingdom	19	%
Switzerland	15
India	11
United States	10
France	8
Canada	7
Netherlands	7
Other	23
Total	100	%

†† % of total investments as of June 30, 2014

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Advertising		1.4%	$	5,460,727
Agriculture		13.7%		51,894,987
Apparel		1.1%		4,049,327
Banks		6.9%		26,181,595
Beverages		7.1%		26,789,775
Biotechnology		1.4%		5,418,820
Building & Real Estate		1.3%		4,948,082
Commercial Services		5.9%		22,572,382
Cosmetics & Personal Care		1.4%		5,416,220
Diversified Financial Services		4.5%		17,266,327
Electrical Components & Equipment		0.7%		2,792,522
Entertainment		0.9%		3,564,015
Food		10.7%		40,611,328
Gas		0.2%		838,431
Healthcare Products		2.1%		7,968,859
Healthcare Services		1.4%		5,470,512
Hotels & Resorts		1.2%		4,463,914
Household Products & Wares		3.8%		14,335,280
Industrial		3.0%		11,277,858
Internet		4.8%		18,140,514
Investment Companies		0.5%		1,979,203
Lodging		2.3%		8,531,284

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Media		1.8%	$	6,737,119
Mining		2.1%		8,020,613
Oil & Gas Services		4.9%		18,550,659
Pharmaceuticals		8.5%		32,361,959
Real Estate		1.3%		4,996,545
Real Estate Investment Trusts		1.2%		4,580,769
Retail		3.9%		14,916,996
		100.0%	$	380,136,622

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Australia	$	10,889,332	$	10,889,332	$	—	$	—
Brazil		5,169,425		5,169,425		—		—
Canada		29,668,649		29,668,649		—		—
China		18,703,126		18,703,126		—		—
Denmark		11,980,897		11,980,897		—		—
France		31,360,290		31,360,290		—		—
Hong Kong		11,023,886		11,023,886		—		—
India		43,616,952		29,534,271		14,082,681		—
Ireland		3,564,015		3,564,015		—		—
Italy		1,680,382		1,680,382		—		—
Japan		4,996,545		4,996,545		—		—
Mexico		8,944,387		8,944,387		—		—
Netherlands		27,979,545		27,979,545		—		—
South Africa		4,758,189		4,758,189		—		—
Spain		5,827,000		5,827,000		—		—
Switzerland		60,037,360		60,037,360		—		—
United Kingdom		73,310,673		73,310,673		—		—
United States		26,625,969		26,625,969		—		—
PREFERRED STOCKS		3,840,377		3,757,063		83,314		—
SHORT-TERM INVESTMENTS		12,837,483		12,837,483		—		—
TOTAL INVESTMENTS	$	396,814,482	$	382,648,487	$	14,165,995	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

150

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Schedule of Investments — June 30, 2014 (Unaudited)

Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — 91.5%
Argentina — 0.6%
YPF S.A. ADR		33,612	$	1,098,440
Austria — 2.7%
Erste Group Bank AG		57,766		1,868,319
Raiffeisen Bank International AG		31,016		990,193
Vienna Insurance Group AG Wiener Versicherung Gruppe		31,770		1,700,519
				4,559,031
Brazil — 4.5%
BRF — S.A.		134,134		3,254,548
CCR S.A.		134,957		1,102,500
Petroleo Brasileiro S.A.		95,384		699,353
Petroleo Brasileiro S.A. ADR		28,100		439,484
Petroleo Brasileiro S.A. ADR		40,579		593,671
Raia Drogasil S.A.		78,861		654,587
Ultrapar Participacoes S.A.		42,570		1,006,113
				7,750,256
Chile — 0.6%
S.A.C.I. Falabella		119,382		1,081,533
China — 9.7%
Bank of China Ltd., Class H		7,640,000		3,420,572
China Construction Bank Corp., Class H		2,808,930		2,123,804
China Life Insurance Co. Ltd., Class H		253,000		662,663
China Oilfield Services Ltd., Class H		634,000		1,524,793
China Pacific Insurance Group Co. Ltd., Class H		24,400		86,104
Chongqing Changan Automobile Co. Ltd., Class B		122,200		241,234
Huadian Power International Corp. Ltd., Class H		250,000		151,282
JD.Com, Inc. ADR*		7,896		225,115
Ping An Insurance Group Co. of China Ltd., Class H		121,000		936,726
Qihoo 360 Technology Co. Ltd. ADR*		7,331		674,745
Sihuan Pharmaceutical Holdings Group Ltd.		1,040,000		636,045
TAL Education Group ADR*		9,058		249,095
Tencent Holdings Ltd.		289,500		4,415,114
Tsingtao Brewery Co. Ltd., Class H		96,000		750,619
Uni-President China Holdings Ltd.		640,800		491,117
				16,589,028
Colombia — 0.8%
Bancolombia S.A. ADR		2,654		153,401
Cementos Argos S.A.		90,669		570,817
Grupo de Inversiones Suramericana SA		28,300		601,422
				1,325,640
Czech Republic — 0.8%
Komercni Banka, A.S.		5,979		1,375,148
Hong Kong — 2.7%
Beijing Enterprises Holdings Ltd.		70,500		667,214
China Mengniu Dairy Co. Ltd.		246,000		1,137,890
China Mobile Ltd.		185,500		1,799,855
China Overseas Land & Investment Ltd.		258,000		625,826

	Number of Shares		Value†
Hong Kong — (continued)
Sino Biopharmaceutical Ltd.		548,000	$	444,034
				4,674,819
Hungary — 0.7%
Richter Gedeon Nyrt		60,328		1,157,601
India — 8.6%
Ashok Leyland Ltd.		800,934		486,060
Bharat Petroleum Corp Ltd.		85,748		855,983
Glenmark Pharmaceuticals Ltd.		107,048		1,014,682
HDFC Bank Ltd.~		100,674		1,407,880
Hero MotoCorp Ltd.		24,837		1,087,984
ICICI Bank Ltd.		63,403		1,494,970
Idea Cellular Ltd.		260,641		573,978
IndusInd Bank Ltd.~		128,389		1,233,683
Infosys Ltd.		15,830		856,852
ITC Ltd.		194,450		1,050,893
ITC Ltd. GDR		47,905		259,070
Oil & Natural Gas Corp. Ltd.		199,413		1,408,606
Shree Cement Ltd.		5,213		624,403
Sun Pharmaceutical Industries Ltd.		22,396		256,170
Tata Consultancy Services Ltd.		33,639		1,356,522
Zee Entertainment Enterprises Ltd.		158,095		771,352
				14,739,088
Indonesia — 1.2%
Indosat Tbk PT		101,400		31,519
Kalbe Farma Tbk PT		6,727,000		941,950
Matahari Department Store Tbk PT		750,600		873,748
Xl Axiata Tbk PT		367,200		157,969
				2,005,186
Japan — 0.4%
Nexon Co. Ltd.		79,400		757,907
Malaysia — 2.3%
Astro Malaysia Holdings Bhd		913,000		998,016
CIMB Group Holdings Bhd		584,463		1,332,379
IHH Healthcare Bhd		463,700		632,515
IJM Corp. Bhd		388,000		809,592
Sapurakencana Petroleum BHD*		140,500		191,651
				3,964,153
Mexico — 5.2%
Alfa S.A.B. de C.V.		715,732		1,980,559
America Movil S.A.B. de C.V., Series L ADR		99,783		2,070,497
Fomento Economico Mexicano S.A.B. de C.V. ADR		17,591		1,647,397
Grupo Financiero Banorte S.A.B. de C.V., Series O		246,650		1,763,918
Grupo Financiero Inbursa Sab de CV		220,676		657,767
Grupo Financiero Santander Mexico S.A.B. de C.V. ADR		63,089		837,822
				8,957,960
Netherlands — 0.6%
Yandex N.V.*		26,255		935,728

151

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Schedule of Investments — June 30, 2014 (Unaudited)

Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Pakistan — 0.6%
United Bank Ltd.		634,700	$	1,084,216
Panama — 0.5%
Copa Holdings S.A., Class A		6,005		856,133
Peru — 1.1%
Credicorp Ltd.		12,052		1,873,724
Philippines — 3.6%
BDO Unibank, Inc.		580,820		1,244,139
DMCI Holdings, Inc.		396,380		671,985
International Container Terminal Services, Inc.		271,320		689,955
LT Group, Inc.		1,452,200		491,053
Metro Pacific Investments Corp.		9,760,400		1,120,266
Metropolitan Bank & Trust		359,810		720,444
SM Investments Corp.		65,690		1,228,019
				6,165,861
Poland — 3.2%
Bank Pekao S.A.		30,576		1,750,350
Bank Zachodni WBK S.A.		13,073		1,588,441
Orange Polska S.A.		390,447		1,247,106
PKP Cargo S.A.		32,176		831,497
				5,417,394
Portugal — 1.0%
Jeronimo Martins SGPS, S.A.		100,363		1,651,186
Qatar — 0.4%
Ooredoo QSC		21,028		686,763
Russia — 2.1%
Mail.Ru Group Ltd. GDR*		19,596		690,759
NOVATEK OAO GDR		12,193		1,516,809
Sistema JSFC GDR		46,891		1,444,243
				3,651,811
South Africa — 4.3%
Life Healthcare Group Holdings Ltd.		150,437		586,895
MTN Group Ltd.		96,009		2,022,102
Naspers Ltd., N Shares		21,842		2,571,338
Pick n Pay Stores Ltd.		147,863		809,597
Vodacom Group Ltd.		113,574		1,403,790
				7,393,722
South Korea — 14.8%
BGF Retail Co. Ltd.*		5,424		336,119
Cheil Worldwide, Inc.*		11,760		265,001
Cosmax, Inc.*		7,218		679,140
Coway Co. Ltd.		17,394		1,456,090
GS Retail Co. Ltd.		1,419		34,711
Hana Financial Group, Inc.		31,980		1,185,264
Hotel Shilla Co. Ltd.		9,867		891,326
Hyundai Department Store Co. Ltd.		2,234		306,904
Hyundai Engineering & Construction Co. Ltd.		19,459		1,107,767
Hyundai Glovis Co. Ltd.		3,724		991,913
Hyundai Heavy Industries Co. Ltd.		2,824		494,019
Hyundai Mipo Dockyard		2,220		321,437

	Number of Shares		Value†
South Korea — (continued)
Hyundai Motor Co.		8,075	$	1,831,600
Kolao Holdings		21,292		482,952
Korean Air Lines Co. Ltd.*		7,380		243,617
NAVER Corp.		2,169		1,789,993
NCSoft Corp.		4,870		878,410
Orion Corp.		686		628,506
Paradise Co. Ltd.		8,617		318,517
Samsung Electronics Co. Ltd.		3,672		4,797,770
Samsung Life Insurance Co. Ltd.		7,588		764,950
Seoul Semiconductor Co. Ltd.		26,487		997,385
Shinhan Financial Group Co. Ltd.		33,716		1,561,173
SK Hynix, Inc.*		45,096		2,163,877
SK Telecom Co. Ltd.		3,892		909,723
				25,438,164
Spain — 1.5%
Cemex Latam Holdings S.A.*		99,528		975,401
Telefonica S.A.		97,034		1,663,516
				2,638,917
Switzerland — 1.9%
Coca-Cola HBC AG*		62,754		1,441,263
DKSH Holding AG		8,532		648,944
The Swatch Group AG		1,982		1,196,843
				3,287,050
Taiwan — 7.9%
Advanced Semiconductor Engineering, Inc.		403,000		524,367
Chailease Holding Co. Ltd.		407,500		1,024,960
China Life Insurance Co. Ltd.		225,227		207,817
Cleanaway Co. Ltd.		46,000		278,083
Delta Electronics, Inc.		116,000		845,000
Eclat Textile Co. Ltd.		62,120		753,146
Fubon Financial Holding Co. Ltd.		598,310		864,662
Ginko International Co. Ltd.		23,000		398,252
Hermes Microvision, Inc.		14,012		556,106
Largan Precision Co. Ltd.		11,000		876,817
MediaTek, Inc.		113,000		1,911,213
St Shine Optical Co. Ltd.		16,000		395,472
Taiwan Semiconductor Manufacturing Co. Ltd.		977,769		4,142,534
Uni-President Enterprises Corp.		399,531		717,223
				13,495,652
Thailand — 4.1%
Advanced Info Service PCL NVDR		133,000		901,556
Bangkok Bank PCL NVDR		208,100		1,237,508
BTS Rail Mass Transit Growth Infrastructure Fund		2,508,800		773,009
Indorama Ventures PCL		742,900		635,202
Kasikornbank PCL NVDR		118,000		741,704
Land and Houses PCL NVDR		3,430,500		1,041,147
Minor International PCL NVDR		555,500		500,643
Robinson Department Store PCL		69,800		122,588
Robinson Department Store PCL NVDR		306,300		537,948
Total Access Communication PCL NVDR		153,100		530,696
				7,022,001

152

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Schedule of Investments — June 30, 2014 (Unaudited)

Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
United Kingdom — 0.9%
Mondi PLC		83,414	$	1,519,178
United States — 2.2%
First Cash Financial Services, Inc.*		5,659		325,902
Samsonite International S.A.		619,500		2,042,246
Yum! Brands, Inc.		18,229		1,480,195
				3,848,343
TOTAL COMMON STOCKS (Cost $127,493,902)				157,001,632
PREFERRED STOCKS — 4.7%
Brazil — 3.1%
Banco Bradesco S.A.		145,024		2,106,934
Itau Unibanco Holding S.A.		117,500		1,691,638
Petroleo Brasileiro S.A.		189,356		1,481,768
				5,280,340
Colombia — 1.1%
Banco Davivienda S.A.		25,259		407,911
Bancolombia S.A.		49,644		727,142
Grupo de Inversiones Suramericana S.A.		31,900		676,229
				1,811,282
India — 0.0%
Zee Entertainment Enterprises Ltd.		56,250		711
South Korea — 0.5%
Samsung Electronics Co. Ltd.		842		882,111
TOTAL PREFERRED STOCKS (Cost $7,682,119)				7,974,444
EXCHANGE TRADED FUNDS — 1.4%
China — 0.0%
Ikang Healthcare Group, Inc. ADR*		1,067		18,502
Mexico — 1.4%
Cemex S.A.B. de C.V. ADR*		183,256		2,424,477
TOTAL EXCHANGE TRADED FUNDS (Cost $1,560,630)				2,442,979
SHORT-TERM INVESTMENTS — 2.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $4,163,984)		4,163,984		4,163,984
TOTAL INVESTMENTS — 100.0% (Cost $140,900,635)			$	171,583,039

~ Fair valued security. The total market value of fair valued securities at June 30, 2014 is $2,641,563.

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

GDR — Global Depository Receipt

NVDR — Non Voting Depositary Receipt.

PCL — Public Company Limited.

PLC — Public Limited Company.

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Advertising		0.6%		$	913,945
Agriculture		0.8%			1,309,963
Airlines		0.7%			1,099,750
Apparel		0.5%			753,146
Auto Manufacturers		1.6%			2,558,894
Banks		18.4%			28,900,381
Beverages		2.8%			4,330,332
Building Materials		1.4%			2,170,621
Chemicals		1.0%			1,641,315
Commercial Services		1.3%			2,041,550
Computers		1.4%			2,213,374
Cosmetics & Personal Care		0.4%			679,140
Distribution & Wholesale		—%	+		34,711
Diversified Financial Services		2.3%			3,611,099
Electric		0.1%			151,282
Electrical Components & Equipment		0.9%			1,401,106
Engineering & Construction		1.1%			1,779,752
Entertainment		0.2%			318,517
Environmental Control		1.1%			1,734,173
Food		5.0%			7,880,470
Forest Products & Paper		1.0%			1,519,178
Gas		0.4%			667,214
Healthcare Products		0.5%			793,724
Healthcare Services		0.8%			1,219,410
Holding Companies		1.8%			2,790,151
Home Builders		0.7%			1,041,147
Hotels & Resorts		0.6%			891,326
Household Products & Wares		1.3%			2,042,246
Insurance		2.8%			4,358,779
Internet		6.1%			9,609,864
Investment Companies		0.4%			601,422
Leisure Time		0.7%			1,087,984
Media		2.8%			4,340,706
Miscellaneous Manufacturing		0.6%			876,817
Oil & Gas		4.2%			6,612,346
Oil & Gas Services		1.1%			1,716,444
Pharmaceuticals		2.8%			4,450,482
Real Estate		1.0%			1,650,786
Retail		6.3%			9,937,578
Semiconductors		9.3%			14,537,146
Shipbuilding		0.5%			815,456
Software		0.5%			757,907
Telecommunications		9.8%			15,443,313
Transportation		1.7%			2,596,419
Water		0.7%			1,120,266
		100.0%		$	157,001,632

+ Rounded.

153

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Emerging Markets Equity Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Argentina	$	1,098,440	$	1,098,440	$	—	$	—
Austria		4,559,031		4,559,031		—		—
Brazil		7,750,256		7,750,256		—		—
Chile		1,081,533		1,081,533		—		—
China		16,589,028		16,589,028		—		—
Colombia		1,325,639		1,325,639		—		—
Czech Republic		1,375,148		1,375,148		—		—
Hong Kong		4,674,819		4,674,819		—		—
Hungary		1,157,601		1,157,601		—		—
India		14,739,088		12,097,525		2,641,563		—
Indonesia		2,005,186		2,005,186		—		—
Japan		757,907		757,907		—		—
Malaysia		3,964,153		3,964,153		—		—
Mexico		8,957,960		8,957,960		—		—
Netherlands		935,728		935,728		—		—
Pakistan		1,084,216		1,084,216		—		—
Panama		856,133		856,133		—		—
Peru		1,873,724		1,873,724		—		—
Philippines		6,165,861		6,165,861		—		—
Poland		5,417,394		5,417,394		—		—
Portugal		1,651,186		1,651,186		—		—
Qatar		686,763		686,763		—		—
Russia		3,651,811		3,651,811		—		—
South Africa		7,393,722		7,393,722		—		—
South Korea		25,438,164		25,438,164		—		—
Spain		2,638,917		2,638,917		—		—
Switzerland		3,287,050		3,287,050		—		—
Taiwan		13,495,652		13,495,652		—		—
Thailand		7,022,001		7,022,001		—		—
United Kingdom		1,519,178		1,519,178		—		—
United States		3,848,343		3,848,343		—		—
EXCHANGE TRADED FUNDS		2,442,979		2,442,979		—		—
PREFERRED STOCKS		7,974,444		7,974,444		—		—
SHORT-TERM INVESTMENTS		4,163,984		4,163,984		—		—
TOTAL INVESTMENTS	$	171,583,039	$	168,941,476	$	2,641,563	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 3 fair value hierarchies during the reporting period.

An amount of $635,080 was transferred from Level 1 into Level 2 at 6/30/14 as a result of changes in significant observable inputs.

The accompanying notes are an integral part of these financial statements.

154

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Real Estate Securities Fund

	Number of Shares		Value†
COMMON STOCKS — 3.9%
Home Builders — 0.5%
Toll Brothers, Inc.*		16,615	$	613,093
Hotels & Resorts — 0.6%
La Quinta Holdings Inc*		42,078		805,373
Lodging — 0.7%
Orient-Express Hotels Ltd., Class A		60,926		885,864
Office Property — 0.8%
Empire State Realty Trust, Inc.		61,498		1,014,717
Real Estate — 1.3%
Forest City Enterprises, Inc., Class A*		81,549		1,620,379
TOTAL COMMON STOCKS (Cost $4,042,983)				4,939,426
REAL ESTATE INVESTMENT TRUSTS — 94.6%
Apartments — 15.1%
American Homes 4 Rent		35,965		638,738
Apartment Investment & Management Co., Class A		76,968		2,483,757
Education Realty Trust, Inc.		48,867		524,832
Equity Residential		108,425		6,830,775
Essex Property Trust, Inc.		5,581		1,031,983
Home Properties, Inc.		36,981		2,365,305
Post Properties, Inc.		9,754		521,449
UDR, Inc.		169,219		4,844,740
				19,241,579
Building & Real Estate — 2.6%
Gramercy Property Trust, Inc.		126,882		767,636
National Retail Properties, Inc.		33,387		1,241,663
Spirit Realty Capital, Inc.		112,365		1,276,466
				3,285,765
Diversified — 7.0%
American Assets Trust, Inc.		35,141		1,214,122
Cousins Properties, Inc.		98,713		1,228,977
Retail Properties of America, Inc. Class A		84,546		1,300,317
Vornado Realty Trust		48,837		5,212,373
				8,955,789
Healthcare — 9.4%
Health Care REIT, Inc.		49,694		3,114,323
Healthcare Trust of America, Inc.		131,232		1,580,033
Omega Healthcare Investors, Inc.		49,711		1,832,348
Ventas, Inc.		85,403		5,474,332
				12,001,036
Hotels & Resorts — 7.5%
DiamondRock Hospitality Co.		142,831		1,831,093
Host Hotels & Resorts, Inc.		144,368		3,177,540
Strategic Hotels & Resorts, Inc.*		177,014		2,072,834
Sunstone Hotel Investors, Inc.		163,855		2,446,355
				9,527,822

	Number of Shares		Value†
Industrial — 5.8%
First Industrial Realty Trust, Inc.		46,043	$	867,450
Prologis, Inc.		142,281		5,846,326
QTS Realty Trust, Inc.		21,620		618,981
				7,332,757
Office Property — 12.4%
American Realty Capital Properties, Inc.		167,244		2,095,567
BioMed Realty Trust, Inc.		71,371		1,558,029
Boston Properties, Inc.		5,045		596,218
Brandywine Realty Trust		1,006		15,694
Corporate Office Properties Trust		54,684		1,520,762
Douglas Emmett, Inc.		68,739		1,939,814
Kilroy Realty Corp.		30,288		1,886,337
Mack-Cali Realty Corp.		31,872		684,610
SL Green Realty Corp.		49,731		5,441,069
				15,738,100
Regional Malls — 17.8%
General Growth Properties, Inc.		165,132		3,890,510
Glimcher Realty Trust		152,186		1,648,174
Pennsylvania Real Estate Investment Trust		5,697		107,217
Simon Property Group, Inc.		83,017		13,804,067
Tanger Factory Outlet Centers		27,207		951,429
Taubman Centers, Inc.		30,607		2,320,317
				22,721,714
Storage & Warehousing — 8.6%
CubeSmart		99,350		1,820,092
Extra Space Storage, Inc.		37,247		1,983,403
Public Storage		33,307		5,707,154
Sovran Self Storage, Inc.		18,723		1,446,352
				10,957,001
Strip Centers — 8.4%
Kimco Realty Corp.		125,375		2,881,118
Ramco-Gershenson Properties Trust		73,051		1,214,108
Regency Centers Corp.		55,379		3,083,503
Washington Prime Group Inc*		24,101		451,643
Weingarten Realty Investors		95,472		3,135,300
				10,765,672
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $103,575,532)				120,527,235
SHORT-TERM INVESTMENTS — 1.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,930,193)		1,930,193		1,930,193
TOTAL INVESTMENTS — 100.0% (Cost $109,548,708)			$	127,396,854

† See Security Valuation Note.

* Non-income producing security.

REIT — Real Estate Investment Trust.

155

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Real Estate Securities Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	4,939,426	$	4,939,426	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		120,527,235		120,527,235		—		—
SHORT-TERM INVESTMENTS		1,930,193		1,930,193		—		—
TOTAL INVESTMENTS	$	127,396,854	$	127,396,854	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

156

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Aggressive Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 65.5%
Penn Series Flexibly Managed Fund*		65,136	$	2,488,205
Penn Series Index 500 Fund*		247,336		3,732,307
Penn Series Large Cap Growth Fund*		201,965		2,488,205
Penn Series Large Cap Value Fund*		279,448		6,220,512
Penn Series Large Core Growth Fund*		40,604		622,051
Penn Series Large Core Value Fund*		214,648		3,110,256
Penn Series Large Growth Stock Fund*		72,500		1,866,153
Penn Series Mid Cap Growth Fund*		174,000		2,488,205
Penn Series Mid Cap Value Fund*		155,202		3,110,256
Penn Series Mid Core Value Fund*		110,554		1,866,153
Penn Series Real Estate Securities Fund*		153,215		2,488,205
Penn Series Small Cap Growth Fund*		23,039		622,051
Penn Series Small Cap Index Fund*		107,497		1,866,153
Penn Series Small Cap Value Fund*		89,957		2,488,205
Penn Series SMID Cap Growth Fund*		127,994		2,488,205
Penn Series SMID Cap Value Fund*		149,820		3,110,256
TOTAL AFFILIATED EQUITY FUNDS (Cost $24,130,003)				41,055,378
AFFILIATED FIXED INCOME FUNDS — 4.0%
Penn Series Quality Bond Fund* (Cost $2,258,305)		188,500		2,488,205
AFFILIATED INTERNATIONAL EQUITY FUNDS — 29.7%
Penn Series Developed International Index Fund*		435,001		5,598,461
Penn Series Emerging Markets Equity Fund*		362,561		4,354,358
Penn Series International Equity Fund*		354,734		8,708,716
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $13,526,259)				18,661,535
SHORT-TERM INVESTMENTS — 0.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $492,085)		492,085		492,085
TOTAL INVESTMENTS — 100.0% (Cost $40,406,652)			$	62,697,203

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	41,055,378	$	41,055,378	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		2,488,205		2,488,205		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		18,661,535		18,661,535		—		—
SHORT-TERM INVESTMENTS		492,085		492,085		—		—
TOTAL INVESTMENTS	$	62,697,203	$	62,697,203	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

157

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Moderately Aggressive Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 56.8%
Penn Series Flexibly Managed Fund*		259,202	$	9,901,507
Penn Series Index 500 Fund*		984,245		14,852,260
Penn Series Large Cap Growth Fund*		602,770		7,426,130
Penn Series Large Cap Value Fund*		1,000,826		22,278,391
Penn Series Large Core Growth Fund*		161,578		2,475,377
Penn Series Large Core Value Fund*		683,334		9,901,507
Penn Series Large Growth Stock Fund*		288,505		7,426,130
Penn Series Mid Cap Growth Fund*		519,310		7,426,130
Penn Series Mid Cap Value Fund*		617,609		12,376,884
Penn Series Mid Core Value Fund*		439,937		7,426,130
Penn Series Real Estate Securities Fund*		457,274		7,426,130
Penn Series Small Cap Growth Fund*		91,681		2,475,377
Penn Series Small Cap Index Fund*		427,772		7,426,130
Penn Series Small Cap Value Fund*		268,479		7,426,130
Penn Series SMID Cap Growth Fund*		382,003		7,426,130
Penn Series SMID Cap Value Fund*		357,713		7,426,130
TOTAL AFFILIATED EQUITY FUNDS (Cost $77,570,132)				141,096,473
AFFILIATED FIXED INCOME FUNDS — 19.0%
Penn Series High Yield Bond Fund*		435,806		4,950,753
Penn Series Limited Maturity Bond Fund*		1,073,450		12,376,884
Penn Series Quality Bond Fund*		2,250,342		29,704,521
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $42,127,785)				47,032,158
AFFILIATED INTERNATIONAL EQUITY FUNDS — 23.9%
Penn Series Developed International Index Fund*		1,538,696		19,803,014
Penn Series Emerging Markets Equity Fund*		1,030,548		12,376,883
Penn Series International Equity Fund*		1,109,130		27,229,144
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $41,385,223)				59,409,041
SHORT-TERM INVESTMENTS — 0.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $796,656)		796,656		796,656
TOTAL INVESTMENTS — 100.0% (Cost $161,879,796)			$	248,334,328

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	141,096,473	$	141,096,473	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		47,032,158		47,032,158		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		59,409,041		59,409,041		—		—
SHORT-TERM INVESTMENTS		796,656		796,656		—		—
TOTAL INVESTMENTS	$	248,334,328	$	248,334,328	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

158

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Moderate Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 43.9%
Penn Series Flexibly Managed Fund*		576,194	$	22,010,601
Penn Series Index 500 Fund*		1,215,518		18,342,168
Penn Series Large Cap Growth Fund*		893,287		11,005,301
Penn Series Large Cap Value Fund*		988,796		22,010,602
Penn Series Large Core Value Fund*		759,510		11,005,301
Penn Series Large Growth Stock Fund*		285,038		7,336,867
Penn Series Mid Cap Growth Fund*		513,068		7,336,867
Penn Series Mid Cap Value Fund*		549,167		11,005,301
Penn Series Mid Core Value Fund*		434,649		7,336,867
Penn Series Real Estate Securities Fund*		45+1,778		7,336,867
Penn Series Small Cap Growth Fund*		135,868		3,668,434
Penn Series Small Cap Index Fund*		422,631		7,336,867
Penn Series Small Cap Value Fund*		265,252		7,336,867
Penn Series SMID Cap Growth Fund*		377,411		7,336,867
Penn Series SMID Cap Value Fund*		530,120		11,005,301
TOTAL AFFILIATED EQUITY FUNDS (Cost $89,369,503)				161,411,078
AFFILIATED FIXED INCOME FUNDS — 35.9%
Penn Series High Yield Bond Fund*		1,291,702		14,673,734
Penn Series Limited Maturity Bond Fund*		3,817,971		44,021,203
Penn Series Quality Bond Fund*		5,558,233		73,368,672
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $117,848,640)				132,063,609
AFFILIATED INTERNATIONAL EQUITY FUNDS — 17.9%
Penn Series Developed International Index Fund*		1,710,225		22,010,602
Penn Series Emerging Markets Equity Fund*		916,345		11,005,301
Penn Series International Equity Fund*		1,344,843		33,015,902
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $44,288,117)				66,031,805
AFFILIATED MONEY MARKET FUND — 2.0%
Penn Series Money Market Fund (Cost $7,336,926)		7,336,926		7,336,926
SHORT-TERM INVESTMENTS — 0.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,070,600)		1,070,600		1,070,600
TOTAL INVESTMENTS — 100.0% (Cost $259,913,786)			$	367,914,018

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	161,411,078	$	161,411,078	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		132,063,609		132,063,609		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		66,031,805		66,031,805		—		—
AFFILIATED MONEY MARKET FUNDS		7,336,926		7,336,926		—		—
SHORT-TERM INVESTMENTS		1,070,600		1,070,600		—		—
TOTAL INVESTMENTS	$	367,914,018	$	367,914,018	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

159

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Moderately Conservative Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 32.8%
Penn Series Flexibly Managed Fund*		203,912	$	7,789,444
Penn Series Index 500 Fund*		221,228		3,338,333
Penn Series Large Cap Growth Fund*		180,646		2,225,555
Penn Series Large Cap Value Fund*		249,950		5,563,888
Penn Series Large Core Value Fund*		153,592		2,225,555
Penn Series Large Growth Stock Fund*		43,231		1,112,778
Penn Series Mid Cap Value Fund*		166,583		3,338,333
Penn Series Mid Core Value Fund*		131,846		2,225,555
Penn Series Real Estate Securities Fund*		137,042		2,225,555
Penn Series Small Cap Index Fund*		128,200		2,225,556
Penn Series SMID Cap Growth Fund*		114,483		2,225,555
Penn Series SMID Cap Value Fund*		107,204		2,225,555
TOTAL AFFILIATED EQUITY FUNDS (Cost $20,256,631)				36,721,662
AFFILIATED FIXED INCOME FUNDS — 52.6%
Penn Series High Yield Bond Fund*		587,735		6,676,666
Penn Series Limited Maturity Bond Fund*		1,930,230		22,255,553
Penn Series Quality Bond Fund*		2,276,136		30,044,996
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $51,374,471)				58,977,215
AFFILIATED INTERNATIONAL EQUITY FUNDS — 9.9%
Penn Series Developed International Index Fund*		345,852		4,451,110
Penn Series Emerging Markets Equity Fund*		92,654		1,112,778
Penn Series International Equity Fund*		226,635		5,563,888
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $6,874,940)				11,127,776
AFFILIATED MONEY MARKET FUND — 4.0%
Penn Series Money Market Fund (Cost $4,451,146)		4,451,146		4,451,146
SHORT-TERM INVESTMENTS — 0.7%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $743,978)		743,978		743,978
TOTAL INVESTMENTS — 100.0% (Cost $83,701,166)			$	112,021,777

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	36,721,662	$	36,721,662	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		58,977,215		58,977,215		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		11,127,776		11,127,776		—		—
AFFILIATED MONEY MARKET FUNDS		4,451,146		4,451,146		—		—
SHORT-TERM INVESTMENTS		743,978		743,978		—		—
TOTAL INVESTMENTS	$	112,021,777	$	112,021,777	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

160

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Conservative Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 17.7%
Penn Series Flexibly Managed Fund*		141,706	$	5,413,157
Penn Series Index 500 Fund*		89,681		1,353,289
Penn Series Large Cap Growth Fund*		109,845		1,353,289
Penn Series Large Cap Value Fund*		60,795		1,353,290
Penn Series Large Core Value Fund*		46,697		676,645
Penn Series Mid Cap Value Fund*		67,529		1,353,289
Penn Series Mid Core Value Fund*		40,086		676,645
TOTAL AFFILIATED EQUITY FUNDS (Cost $7,417,636)				12,179,604
AFFILIATED FIXED INCOME FUNDS — 67.0%
Penn Series High Yield Bond Fund*		476,510		5,413,157
Penn Series Limited Maturity Bond Fund*		1,467,139		16,916,117
Penn Series Quality Bond Fund*		1,794,134		23,682,563
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $39,480,678)				46,011,837
AFFILIATED INTERNATIONAL EQUITY FUNDS — 4.9%
Penn Series Developed International Index Fund*		157,726		2,029,934
Penn Series International Equity Fund*		55,124		1,353,289
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $1,928,141)				3,383,223
AFFILIATED MONEY MARKET FUND — 8.9%
Penn Series Money Market Fund (Cost $6,089,852)		6,089,852		6,089,852
SHORT-TERM INVESTMENTS — 1.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $989,507)		989,507		989,507
TOTAL INVESTMENTS — 100.0% (Cost $55,905,814)			$	68,654,023

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2014 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2014		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	12,179,604	$	12,179,604	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		46,011,837		46,011,837		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		3,383,223		3,383,223		—		—
AFFILIATED MONEY MARKET FUNDS		6,089,852		6,089,852		—		—
SHORT-TERM INVESTMENTS		989,507		989,507		—		—
TOTAL INVESTMENTS	$	68,654,023	$	68,654,023	$	—	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

161

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2014

	Money Market Fund		Limited Maturity Bond Fund		Quality Bond Fund		High Yield Bond Fund
ASSETS
Investments at value	$	146,345,253	$	243,205,808	$	524,283,979	$	196,244,528
Foreign currency, at value		—		—		—		35,283
Cash		7,299		10		881,107		51,619
Interest, dividends and reclaims receivable		25,069		1,030,492		1,958,443		2,909,459
Receivable for investment securities sold		—		—		24,466,500		232,549
Receivable from The Penn Mutual Life Insurance Co.		4,454		—		—		—
Receivable for capital stock sold		441,222		3,084,285		3,760,233		672,886
Net unrealized appreciation of forward currency contracts		—		—		—		15,831
Other assets		2,772		4,469		8,142		3,895
Total Assets		146,826,069		247,325,064		555,358,404		200,166,050
LIABILITIES
Payable for investment securities purchased		—		1,110,625		7,966,177		2,603,841
Payable for capital stock redeemed		845,242		20,309		45,740		36,188
Future variation margin payable		—		—		46,000		—
Payable to investment adviser		—		91,696		196,451		89,925
Payable to The Penn Mutual Life Insurance Co.		—		92,203		204,214		72,222
Net unrealized depreciation of forward foreign currency contracts		—		—		—		256,312
Other liabilities		25,269		29,618		68,854		46,081
Total Liabilities		870,511		1,344,451		8,527,436		3,104,569
NET ASSETS	$	145,955,558	$	245,980,613	$	546,830,968	$	197,061,481
Investments at cost	$	146,345,253	$	242,576,579	$	513,471,470	$	186,174,848
Foreign currency at cost		—		—		—		34,875
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	145,955,558	$	244,159,726	$	522,346,642	$	181,596,434
Undistributed net investment income (loss)		—		722,636		4,991,934		5,122,925
Accumulated net realized gain (loss) on investment transactions and foreign exchange		—		469,021		8,716,290		512,069
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		—		629,230		10,776,102		9,830,053
NET ASSETS	$	145,955,558	$	245,980,613	$	546,830,968	$	197,061,481
Shares outstanding, $0.10 par value, 500 million shares authorized		145,939,632
Shares outstanding, $0.10 par value, 250 million shares authorized						41,412,849		17,350,249
Shares outstanding, $0.0001 par value, 250 million shares authorized				21,333,017
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	1.00	$	11.53	$	13.20	$	11.36

The accompanying notes are an integral part of these financial statements.

162

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2014

	Flexibly Managed Fund			Balanced Fund			Large Growth Stock Fund			Large Cap Growth Fund
ASSETS
Investments of affiliated issuers at value	$	—		$	79,038,659		$	—		$	—
Investments of unaffiliated issuers at value		2,912,640,137			271,443			270,442,478			55,931,295
Foreign currency, at value		180,795			—			11,790			—
Cash		—			—			—			500
Interest, dividends and reclaims receivable		10,674,336			—			78,914			48,116
Receivable for investment securities sold		21,885,335			646,745			547,409			—
Receivable for capital stock sold		10,127			—			22,414			632,299
Other assets		1,807			1,072			5,183			1,089
Total Assets		2,945,392,537			79,957,919			271,108,188			56,613,299
LIABILITIES
Call options written, at value		8,444,768			—			—			—
Payable for investment securities purchased		30,882,178			635,337			239,767			65,501
Payable for capital stock redeemed		1,702,128			91,315			151,738			166,634
Payable to investment adviser		1,659,929			—			157,491			25,287
Payable to The Penn Mutual Life Insurance Co.		1,056,811			26,711			97,545			20,410
Other liabilities		247,839			8,365			23,208			8,057
Total Liabilities		43,993,653			761,728			669,749			285,889
NET ASSETS	$	2,901,398,884		$	79,196,191		$	270,438,439		$	56,327,410
Investments of affiliated issuers at cost	$	—		$	48,868,919		$	—		$	—
Investments of unaffiliated issuers at cost		2,385,565,458			271,443			178,536,079			47,620,386
Foreign currency at cost		180,024			—			11,750			—
Call options written, premiums received		(8,471,533	)		—			—			—
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	2,203,508,408		$	51,852,838		$	159,889,244		$	46,233,011
Undistributed net investment income (loss)		16,480,144			(77,680	)		(277,054	)		124,667
Accumulated net realized gain (loss) on investment transactions and foreign exchange		154,309,370			(2,748,707	)		18,919,749			1,658,649
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		527,100,962			30,169,740			91,906,500			8,311,083
NET ASSETS	$	2,901,398,884		$	79,196,191		$	270,438,439		$	56,327,410
Shares outstanding, $0.10 par value, 250 million shares authorized		75,948,027						10,507,104
Shares outstanding, $0.0001 par value, 250 million shares authorized					5,106,292						4,573,091
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	38.20		$	15.51		$	25.74		$	12.32

The accompanying notes are an integral part of these financial statements.

163

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2014

	Large Core Growth Fund			Large Cap Value Fund		Large Core Value Fund		Index 500 Fund
ASSETS
Investments at value	$	125,462,647		$	227,449,659	$	195,094,953	$	423,937,169
Interest, dividends and reclaims receivable		20,347			359,293		188,196		444,621
Receivable for investment securities sold		936,127			2,689,992		1,438,229		1,898,738
Receivable for capital stock sold		961			541,927		21,895		6,276
Futures receivable		—			—		—		1,540
Other assets		2,438			4,298		3,836		16,413
Total Assets		126,422,520			231,045,169		196,747,109		426,304,757
LIABILITIES
Payable for investment securities purchased		—			2,521,110		1,969,889		342,889
Payable for capital stock redeemed		124,443			554,516		1,037,482		3,425,274
Payable to investment adviser		61,973			122,523		105,469		45,418
Payable to The Penn Mutual Life Insurance Co.		45,789			82,460		70,140		154,601
Other liabilities		20,029			33,563		26,346		55,450
Total Liabilities		252,234			3,314,172		3,209,326		4,023,632
NET ASSETS	$	126,170,286		$	227,730,997	$	193,537,783	$	422,281,125
Investments at cost	$	89,395,206		$	187,990,735	$	144,782,413	$	257,223,260
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	84,275,368		$	179,956,613	$	133,239,749	$	268,938,615
Undistributed net investment income (loss)		(179,408	)		3,220,048		1,310,655		3,324,880
Accumulated net realized gain (loss) on investment transactions and foreign exchange		6,006,885			5,095,412		8,684,839		(16,774,261	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		36,067,441			39,458,924		50,302,540		166,791,891
NET ASSETS	$	126,170,286		$	227,730,997	$	193,537,783	$	422,281,125
Shares outstanding, $0.10 par value, 250 million shares authorized					10,229,321
Shares outstanding, $0.0001 par value, 250 million shares authorized		8,237,128					13,359,900		27,984,043
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	15.32		$	22.26	$	14.49	$	15.09

The accompanying notes are an integral part of these financial statements.

164

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2014

	Mid Cap Growth Fund			Mid Cap Value Fund		Mid Core Value Fund		SMID Cap Growth Fund
ASSETS
Investments at value	$	123,557,682		$	185,095,496	$	77,296,398	$	60,041,258
Interest, dividends and reclaims receivable		52,641			367,197		160,749		3,394
Receivable for investment securities sold		—			—		260,461		8,043,396
Receivable for capital stock sold		7,562,046			5,315		6,380		247,052
Other assets		2,406			3,454		1,449		1,270
Total Assets		131,174,775			185,471,462		77,725,437		68,336,370
LIABILITIES
Payable for investment securities purchased		—			—		246,995		788,113
Payable for capital stock redeemed		8,102			1,342,280		795,178		6,050,636
Payable to investment adviser		70,728			83,209		45,146		40,329
Payable to The Penn Mutual Life Insurance Co.		45,209			67,152		27,712		24,206
Net unrealized depreciation of forward foreign currency contracts		—			—		27,048		—
Other liabilities		21,816			23,517		22,058		13,065
Total Liabilities		145,855			1,516,158		1,164,137		6,916,349
NET ASSETS	$	131,028,920		$	183,955,304	$	76,561,300	$	61,420,021
Investments at cost	$	116,908,041		$	147,226,895	$	68,354,646	$	46,751,744
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	95,794,591		$	133,046,540	$	63,345,252	$	45,174,090
Undistributed net investment income (loss)		(158,464	)		1,701,794		502,209		(390,179	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		28,743,152			11,338,369		3,798,901		3,458,321
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		6,649,641			37,868,601		8,914,938		13,177,789
NET ASSETS	$	131,028,920		$	183,955,304	$	76,561,300	$	61,420,021
Shares outstanding, $0.0001 par value, 250 million shares authorized		9,162,704			9,178,567		4,536,839		3,159,971
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	14.30		$	20.04	$	16.88	$	19.44

The accompanying notes are an integral part of these financial statements.

165

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2014

	SMID Cap Value Fund		Small Cap Growth Fund			Small Cap Value Fund		Small Cap Index Fund
ASSETS
Investments at value	$	70,535,914	$	91,340,779		$	246,219,925	$	69,539,255
Cash		—		—			4,707		—
Interest, dividends and reclaims receivable		92,797		16,001			397,056		71,413
Receivable for investment securities sold		649,000		424,694			3,142,800		6,321,702
Receivable for capital stock sold		562,317		17,366			32,322		801,878
Futures receivable		—		—			—		10,778
Other assets		1,273		1,727			4,672		1,298
Total Assets		71,841,301		91,800,567			249,801,482		76,746,324
LIABILITIES
Payable for investment securities purchased		532,233		903,921			1,343,011		6,291,254
Payable for capital stock redeemed		525,663		230,589			194,642		7,843
Payable to investment adviser		53,395		54,223			143,253		16,717
Payable to The Penn Mutual Life Insurance Co.		24,800		32,341			89,139		24,801
Other liabilities		12,845		25,026			36,424		25,311
Total Liabilities		1,148,936		1,246,100			1,806,469		6,365,926
NET ASSETS	$	70,692,365	$	90,554,467		$	247,995,013	$	70,380,398
Investments at cost	$	53,481,538	$	72,966,802		$	185,393,739	$	49,820,606
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	48,718,615	$	70,166,850		$	173,081,793	$	48,107,871
Undistributed net investment income (loss)		184,938		(194,292	)		589,328		220,141
Accumulated net realized gain (loss) on investment transactions and foreign exchange		4,734,436		2,207,932			13,497,706		2,296,430
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		17,054,376		18,373,977			60,826,186		19,755,956
NET ASSETS	$	70,692,365	$	90,554,467		$	247,995,013	$	70,380,398
Shares outstanding, $0.10 par value, 250 million shares authorized				3,353,578			8,965,892
Shares outstanding, $0.0001 par value, 250 million shares authorized		3,405,740							4,054,500
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	20.76	$	27.00		$	27.66	$	17.36

The accompanying notes are an integral part of these financial statements.

166

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2014

	Developed International Index Fund			International Equity Fund			Emerging Markets Equity Fund			Real Estate Securities Fund
ASSETS
Investments at value	$	110,359,680		$	396,814,482		$	171,583,039		$	127,396,854
Foreign currency, at value		872,617			907,649			50,962			—
Interest, dividends and reclaims receivable		371,428			1,398,207			730,337			308,259
Receivable for investment securities sold		—			4,272,398			885,675			1,343,312
Receivable for capital stock sold		26,451			208,698			11,994			4,073
Futures receivable		49,752			—			—			—
Other assets		81,830			7,962			3,381			2,478
Total Assets		111,761,758			403,609,396			173,265,388			129,054,976
LIABILITIES
Payable for investment securities purchased		178			4,025,245			1,611,329			353,760
Payable for capital stock redeemed		447,058			329,687			1,684,345			1,512,925
Payable to investment adviser		27,560			277,251			191,755			73,861
Payable to The Penn Mutual Life Insurance Co.		41,397			147,227			62,542			46,910
Deferred Indian capital gains tax		—			—			233,956			—
Net unrealized depreciation of forward foreign currency contracts		—			—			3,986			—
Other liabilities		41,548			72,115			67,794			25,145
Total Liabilities		557,741			4,851,525			3,855,707			2,012,601
NET ASSETS	$	111,204,017		$	398,757,871		$	169,409,681		$	127,042,375
Investment at cost	$	82,218,383		$	303,829,825		$	140,900,635		$	109,548,708
Foreign currency at cost		867,854			901,179			50,286			—
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	83,174,116		$	311,522,394		$	144,104,309		$	105,585,246
Undistributed net investment income (loss)		2,087,465			(858,797	)		84,116			1,387,698
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(2,210,829	)		(4,898,168	)		(5,224,829	)		2,221,285
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		28,153,265			92,992,442			30,446,085			17,848,146
NET ASSETS	$	111,204,017		$	398,757,871		$	169,409,681		$	127,042,375
Shares outstanding, $0.10 par value, 250 million shares authorized					16,244,808
Shares outstanding, $0.0001 par value, 250 million shares authorized		8,641,266						14,112,469			7,824,365
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	12.87		$	24.55		$	12.00		$	16.24

The accompanying notes are an integral part of these financial statements.

167

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2014

	Aggressive Allocation Fund			Moderately Aggressive Allocation Fund			Moderate Allocation Fund			Moderately Conservative Allocation Fund
ASSETS
Investments of affiliated issuers at value	$	62,205,118		$	247,537,672		$	366,843,418		$	111,277,799
Investments of unaffiliated issuers at value		492,085			796,656			1,070,600			743,978
Receivable for investment securities sold		1,467,426			4,037,067			6,472,012			924,243
Receivable for capital stock sold		193,739			35,922			121,268			284
Other assets		1,136			4,709			7,182			2,324
Total Assets		64,359,504			252,412,026			374,514,480			112,948,628
LIABILITIES
Payable for investment securities purchased		1,563,518			3,827,130			6,394,828			935,706
Payable for capital stock redeemed		961			1,765			80,947			214,453
Payable to investment adviser		6,085			24,025			34,543			10,990
Payable to The Penn Mutual Life Insurance Co.		22,405			91,091			134,895			42,155
Other liabilities		6,307			19,461			29,509			10,815
Total Liabilities		1,599,276			3,963,472			6,674,722			1,214,119
NET ASSETS	$	62,760,228		$	248,448,554		$	367,839,758		$	111,734,509
Investments of affiliated issuers at cost	$	39,914,567			161,083,140		$	258,843,186		$	82,957,188
Investments of unaffiliated issuers at cost		492,085			796,656			1,070,600			743,978
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	40,749,290		$	163,698,555		$	260,249,580		$	83,558,177
Undistributed net investment income (loss)		(96,839	)		(372,104	)		(553,031	)		(177,760	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(182,775	)		(1,332,430	)		142,976			33,481
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		22,290,552			86,454,533			108,000,233			28,320,611
NET ASSETS	$	62,760,228		$	248,448,554		$	367,839,758		$	111,734,509
Shares outstanding, $0.0001 par value, 250 million shares authorized		4,173,940			15,902,010			25,666,100			8,269,419
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	15.04		$	15.62		$	14.33		$	13.51

The accompanying notes are an integral part of these financial statements.

168

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2014

	Conservative Allocation Fund
ASSETS
Investments of affiliated issuers at value	$	67,664,516
Investments of unaffiliated issuers at value		989,507
Receivable for investment securities sold		421,988
Receivable for capital stock sold		315
Other assets		1,435
Total Assets		69,077,761
LIABILITIES
Payable for investment securities purchased		430,311
Payable for capital stock redeemed		7,815
Payable to investment adviser		6,811
Payable to The Penn Mutual Life Insurance Co.		25,780
Other liabilities		7,795
Total Liabilities		478,512
NET ASSETS	$	68,599,249
Investments of affiliated issuers at cost	$	54,916,307
Investments of unaffiliated issuers at cost		989,507
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	56,049,816
Undistributed net investment income (loss)		(112,918	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(85,858	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		12,748,209
NET ASSETS	$	68,599,249
Shares outstanding, $0.0001 par value, 250 million shares authorized		5,424,474
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	12.65

The accompanying notes are an integral part of these financial statements.

169

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For the Six Months Ended June 30, 2014

	Money Market Fund			Limited Maturity Bond Fund			Quality Bond Fund			High Yield Bond Fund
INVESTMENT INCOME:
Dividends	$	615		$	642		$	1,735		$	9,940
Interest		81,945			1,473,499			6,624,024			6,146,602
Total Investment Income		82,560			1,474,141			6,625,759			6,156,542
EXPENSES
Investment advisory fees		156,011			430,894			954,735			492,453
Administration fees		97,980			183,326			405,893			141,898
Accounting fees		42,577			71,026			120,850			57,217
Director fees and expenses		2,889			5,341			12,151			4,198
Custodian fees and expenses		12,914			9,256			20,347			22,474
Pricing fees		5,021			6,996			11,655			31,870
Professional fees		8,254			16,463			34,787			13,299
Printing fees		5,524			10,210			23,169			8,003
Other expenses		13,655			17,993			50,238			15,326
Total Expenses		344,825			751,505			1,633,825			786,738
Less: Waivers and reimbursement from advisor		156,011			—			—			—
Less: Waivers and reimbursement from administrator		112,801			—			—			—
Net Expenses		76,013			751,505			1,633,825			786,738
Net investment income (loss)		6,547			722,636			4,991,934			5,369,804
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		—			469,021			9,139,027			2,119,795
Net realized gain (loss) on futures contracts		—			—			(128,487	)		—
Net realized foreign currency exchange gain (loss)		—			—			—			210,064
Change in net unrealized appreciation (depreciation) of investments and foreign currency		—			(217,908	)		5,354,019			2,239,571
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			(36,406	)		—
Net Gain (Loss) on Investment Securities and Foreign Currency		—			251,113			14,328,153			4,569,430
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	6,547		$	973,749		$	19,320,087		$	9,939,234
	Flexibly Managed Fund			Balanced Fund			Large Growth Stock Fund			Large Cap Growth Fund
INVESTMENT INCOME:
Dividends	$	15,119,608		$	12		$	938,989		$	376,723
Interest		13,970,469			—			2			229
Foreign tax withheld		(111,648	)		—			(7,887	)		(10,035	)
Total Investment Income		28,978,429			12			931,104			366,917
EXPENSES
Investment advisory fees		8,732,665			—			851,008			148,848
Administration fees		2,062,799			58,422			195,692			40,595
Accounting fees		344,464			5,951			75,148			18,944
Director fees and expenses		60,105			1,746			5,858			1,212
Custodian fees and expenses		119,528			2,777			20,508			12,824
Pricing fees		20,246			985			9,553			7,783
Professional fees		184,609			5,049			18,882			3,987
Printing fees		114,712			3,326			11,146			2,307
Other expenses		190,376			6,714			20,363			5,805
Total Expenses		11,829,504			84,970			1,208,158			242,305
Less: Waivers and reimbursement from administrator		—			7,278			—			171
Net Expenses		11,829,504			77,692			1,208,158			242,134
Net investment income (loss)		17,148,925			(77,680	)		(277,054	)		124,783
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		160,426,437			1,130,280			19,279,036			1,742,792
Net realized gain (loss) on options		(820,369	)		—			—			—
Net realized foreign currency exchange gain (loss)		(52,954	)		—			(1,157	)		(584	)
Change in net unrealized appreciation (depreciation) of investments and foreign currency		11,291,705			3,128,332			(12,491,022	)		600,649
Net Gain (Loss) on Investment Securities and Foreign Currency		170,844,819			4,258,612			6,786,857			2,342,857
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	187,993,744		$	4,180,932		$	6,509,803		$	2,467,640

The accompanying notes are an integral part of these financial statements.

170

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For the Six Months Ended June 30, 2014

	Large Core Growth Fund			Large Cap Value Fund			Large Core Value Fund			Index 500 Fund
INVESTMENT INCOME:
Dividends	$	365,159		$	4,202,067		$	2,172,766		$	4,063,180
Interest		—			—			—			299
Foreign tax withheld		(514	)		(24,678	)		(53,537	)		(404	)
Total Investment Income (Loss)		364,645			4,177,389			2,119,229			4,063,075
EXPENSES
Investment advisory fees		371,113			673,120			571,970			183,229
Administration fees		92,778			162,398			137,783			301,806
Accounting fees		40,844			64,050			55,845			100,032
Director fees and expenses		2,818			4,808			4,086			8,858
Custodian fees and expenses		10,259			9,130			10,442			22,502
Pricing fees		1,466			3,055			1,540			5,117
Professional fees		8,548			14,542			12,022			33,867
Printing fees		5,356			9,156			7,774			16,887
Other expenses		10,871			17,082			15,068			60,185
Total Expenses		544,053			957,341			816,531			732,483
Net investment income (loss)		(179,408	)		3,220,048			1,302,699			3,330,592
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		10,643,145			5,592,324			16,074,099			2,788,618
Net realized gain (loss) on futures contracts		—			—			—			361,705
Change in net unrealized appreciation (depreciation) of investments and foreign currency		(6,894,757	)		5,583,587			(2,590,978	)		21,197,706
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			—			69,801
Net Gain (Loss) on Investment Securities and Foreign Currency		3,748,388			11,175,911			13,483,121			24,417,830
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	3,568,980		$	14,395,959		$	14,785,820		$	27,748,422
	Mid Cap Growth Fund			Mid Cap Value Fund			Mid Core Value Fund			SMID Cap Growth Fund
INVESTMENT INCOME:
Dividends	$	435,316		$	2,355,162		$	865,851		$	64,337
Interest		—			22			—			—
Foreign tax withheld		(880	)		—			(6,198	)		—
Total Investment Income (Loss)		434,436			2,355,184			859,653			64,337
EXPENSES
Investment advisory fees		424,843			480,925			260,944			243,675
Administration fees		91,038			131,161			54,363			48,734
Accounting fees		40,264			53,638			25,370			22,743
Director fees and expenses		2,703			3,831			1,600			1,438
Custodian fees and expenses		8,333			6,903			22,449			14,111
Pricing fees		2,163			1,992			7,683			1,676
Professional fees		8,023			11,823			4,847			4,516
Printing fees		5,146			7,303			3,049			2,740
Other expenses		10,387			13,897			6,992			6,370
Total Expenses		592,900			711,473			387,297			346,003
Less: Waivers and reimbursement from advisor		—			—			—			3,212
Net Expenses		592,900			711,473			387,297			342,791
Net investment income (loss)		(158,464	)		1,643,711			472,356			(278,454	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		28,777,333			11,338,369			3,956,024			3,292,821
Net realized foreign currency exchange gain (loss)		232			—			(10,941	)		—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		(22,495,530	)		1,308,307			2,698,069			(3,860,644	)
Net Gain (Loss) on Investment Securities and Foreign Currency		6,282,035			12,646,676			6,643,152			(567,823	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	6,123,571		$	14,290,387		$	7,115,508		$	(846,277	)

The accompanying notes are an integral part of these financial statements.

171

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For the Six Months Ended June 30, 2014

	SMID Cap Value Fund			Small Cap Growth Fund			Small Cap Value Fund			Small Cap Index Fund
INVESTMENT INCOME:
Dividends	$	563,363		$	251,369		$	2,012,358		$	425,415
Interest		—			—			9			—
Foreign tax withheld		—			(2,617	)		(4,179	)		(246	)
Total Investment Income		563,363			248,752			2,008,188			425,169
EXPENSES
Investment advisory fees		306,394			320,666			946,655			98,435
Administration fees		48,378			64,729			176,523			49,218
Accounting fees		22,576			30,207			68,759			22,968
Director fees and expenses		1,405			1,955			5,238			1,448
Custodian fees and expenses		6,965			7,714			28,382			20,608
Pricing fees		1,714			2,503			3,392			14,388
Professional fees		4,337			5,876			16,091			4,471
Printing fees		2,678			3,708			9,958			2,756
Other expenses		6,326			8,154			18,436			13,319
Total Expenses		400,773			445,512			1,273,434			227,611
Less: Waivers and reimbursement from advisor		22,348			—			—			31,741
Net Expenses		378,425			445,512			1,273,434			195,870
Net investment income (loss)		184,938			(196,760	)		734,754			229,299
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		4,865,124			2,329,444			14,038,619			2,539,191
Net realized gain (loss) on futures contracts		—			—			—			54,278
Net realized foreign currency exchange gain (loss)		—			(48	)		—			—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		410,801			(268,651	)		(1,297,584	)		(893,135	)
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			—			13,727
Net Gain (Loss) on Investment Securities and Foreign Currency		5,275,925			2,060,745			12,741,035			1,714,061
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	5,460,863		$	1,863,985		$	13,475,789		$	1,943,360
	Developed International Index Fund			International Equity Fund			Emerging Markets Equity Fund			Real Estate Securities Fund
INVESTMENT INCOME:
Dividends	$	3,062,226		$	6,127,883		$	2,298,781		$	1,983,599
Interest		473			—			18			2
Foreign tax withheld		(202,088	)		(380,341	)		(294,474	)		—
Total Investment Income		2,860,611			5,747,542			2,004,325			1,983,601
EXPENSES
Investment advisory fees		160,345			1,630,117			947,854			424,538
Administration fees		80,172			287,494			120,490			90,972
Accounting fees		41,986			124,915			58,114			40,242
Director fees and expenses		2,308			8,365			3,542			2,608
Custodian fees and expenses		40,508			61,495			151,861			12,989
Pricing fees		53,542			13,118			17,091			1,862
Professional fees		6,683			31,049			27,027			7,639
Printing fees		4,410			15,957			6,756			4,986
Recaptured advisory fees		—			—			62,662			—
Other expenses		34,668			29,524			13,907			10,067
Total Expenses		424,623			2,202,034			1,409,304			595,903
Less: Waivers and reimbursement from advisor		72,559			—			31,604			—
Net Expenses		352,063			2,202,034			1,377,700			595,903
Net investment income (loss)		2,508,548			3,545,508			626,625			1,387,698
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		(71,875	)		15,284,543			3,572,120			2,451,477
Net realized gain (loss) on futures contracts		202,353			—			—			—
Net realized foreign currency exchange gain (loss)		3,990			(168,194	)		(60,124	)		—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		2,574,424			11,445,656			4,508,655			15,565,559
Change in net unrealized appreciation (depreciation) of futures contracts		(96,931	)		—			—			—
Net Gain (Loss) on Investment Securities and Foreign Currency		2,611,962			26,562,005			8,020,651			18,017,036
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	5,120,509		$	30,107,513		$	8,647,276		$	19,404,734

The accompanying notes are an integral part of these financial statements.

172

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For the Six Months Ended June 30, 2013

	Aggressive Allocation Fund			Moderately Aggressive Allocation Fund			Moderate Allocation Fund			Moderately Conservative Allocation Fund
INVESTMENT INCOME:
Dividends	$	5		$	27		$	364		$	249
Total Investment Income		5			27			364			249
EXPENSES
Investment advisory fees		31,087			125,698			185,760			59,605
Administration fees		43,596			177,381			264,852			83,781
Accounting fees		5,951			11,825			17,657			5,951
Director fees and expenses		1,263			5,156			7,800			2,494
Custodian fees and expenses		2,084			8,352			12,412			3,953
Pricing fees		1,127			1,141			1,145			1,116
Professional fees		3,831			15,510			23,085			7,263
Printing fees		2,409			9,842			14,878			4,758
Recaptured advisory fees		599			—			—			—
Other expenses		5,076			17,226			25,806			9,088
Total Expenses		97,023			372,131			553,395			178,009
Less: Waivers and reimbursement from advisor		179			—			—			—
Net Expenses		96,844			372,131			553,395			178,009
Net investment loss		(96,839	)		(372,104	)		(553,031	)		(177,760	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		237,470			817,298			1,839,247			819,837
Change in net unrealized appreciation (depreciation) of investments and foreign currency		3,482,654			12,816,237			15,618,527			3,898,998
Net Gain (Loss) on Investment Securities and Foreign Currency		3,720,124			13,633,536			17,457,774			4,718,835
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	3,623,285		$	13,261,432		$	16,904,743		$	4,541,075
	Conservative Allocation Fund
INVESTMENT INCOME:
Dividends	$	341
Total Investment Income		341
EXPENSES
Investment advisory fees		36,437
Administration fees		51,172
Accounting fees		5,951
Director fees and expenses		1,536
Custodian fees and expenses		2,495
Pricing fees		1,067
Professional fees		4,354
Printing fees		2,929
Recaptured advisory fees		1,285
Other expenses		6,121
Total Expenses		113,347
Less: Waivers and reimbursement from advisor		88
Net Expenses		113,259
Net investment loss		(112,918	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		371,406
Change in net unrealized appreciation (depreciation) of investments and foreign currency		1,861,397
Net Gain (Loss) on Investment Securities and Foreign Currency		2,232,803
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,119,885

The accompanying notes are an integral part of these financial statements.

173

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Money Market Fund						Limited Maturity Bond Fund
	Six Months Ended 6/30/14			Year Ended 12/31/13			Six Months Ended 6/30/14			Year Ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	6,547		$	13,151		$	722,636		$	1,182,668
Net realized gains (loss) from investment transactions		—			—			469,021			167,105
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		—			—			(217,908	)		(1,512,020	)
Net Increase (Decrease) in Net Assets Resulting from Operations		6,547			13,151			973,749			(162,247	)
Distributions from:
Net investment income		(6,547	)		(13,151	)		—			—
Total Distributions		(6,547	)		(13,151	)		—			—
Capital Share Transactions (1):
Shares issued		63,385,031			134,904,829			22,509,588			93,163,341
Shares issued in lieu of cash distributions		6,549			13,153			—			—
Shares redeemed		(42,317,038	)		(151,761,830	)		(21,169,880	)		(51,719,394	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		21,074,542			(16,843,848	)		1,339,708			41,443,947
Total Increase (Decrease)		21,074,542			(16,843,848	)		2,313,457			41,281,700
Net Assets:
Beginning of period		124,881,016			141,724,864			243,667,156			202,385,456
End of Period	$	145,955,558		$	124,881,016		$	245,980,613		$	243,667,156
Undistributed net investment income (loss)	$	—		$	—		$	722,636		$	—
(1) Shares Issued and Redeemed:
Shares issued		63,385,031			134,904,829			1,955,036			8,107,656
Shares issued in lieu of cash distributions		6,549			13,153			—			—
Shares redeemed		(42,317,038	)		(151,761,830	)		(1,838,604	)		(4,503,971	)
		21,074,541			(16,843,848	)		116,432			3,603,685
	Quality Bond Fund						High Yield Bond Fund
	Six Months Ended 6/30/14			Year Ended 12/31/13			Six Months Ended 6/30/14			Year Ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	4,991,934		$	10,455,707		$	5,369,804		$	11,112,337
Net realized gains (loss) from investment transactions		9,139,027			162,217			2,119,795			4,828,712
Net realized gains (loss) on futures contracts		(128,487	)		—			—			—
Net realized foreign exchange gain (loss)		—			—			210,064			(720,976	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		5,317,613			(26,300,466	)		2,239,571			(1,253,621	)
Net Increase (Decrease) in Net Assets Resulting from Operations		19,320,087			(15,682,542	)		9,939,234			13,966,452
Capital Share Transactions (1):
Shares issued		22,245,248			138,595,418			12,733,668			27,295,243
Shares redeemed		(41,493,033	)		(144,553,737	)		(14,399,356	)		(32,193,986	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(19,247,785	)		(5,958,319	)		(1,665,688	)		(4,898,743	)
Total Increase (Decrease)		72,302			(21,640,861	)		8,273,546			9,067,709
Net Assets:
Beginning of period		546,758,666			568,399,527			188,787,935			179,720,226
End of Period	$	546,830,968		$	546,758,666		$	197,061,481		$	188,787,935
Undistributed net investment income (loss)	$	4,991,934		$	—		$	5,122,925		$	(246,879	)
(1) Shares Issued and Redeemed:
Shares issued		1,704,992			10,832,965			1,147,194			2,636,071
Shares issued in lieu of cash distributions		—			—			—			—
Shares redeemed		(3,190,734	)		(11,195,971	)		(1,309,243	)		(3,106,563	)
		(1,485,742	)		(363,006	)		(162,049	)		(470,492	)

The accompanying notes are an integral part of these financial statements.

174

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Flexibly Managed Fund						Balanced Fund
	For the Six Months Ended 6/30/14			For the year ended 12/31/13			For the Six Months Ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	17,148,925		$	24,808,683		$	(77,680	)	$	(149,409	)
Net realized gains (loss) from investment transactions		160,426,437			176,932,010			1,130,280			2,571,982
Net realized gains (loss) on written options		(820,369	)		1,661,726			—			—
Net realized foreign exchange gain (loss)		(52,954	)		167,635			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		3,783,079			274,455,490			3,128,332			9,322,862
Net change in unrealized appreciation (depreciation) of written options		7,508,626			(7,499,889	)		—			—
Net Increase (Decrease) in Net Assets Resulting from Operations		187,993,744			470,525,655			4,180,932			11,745,435
Capital Share Transactions (1):
Shares issued		84,356,140			289,558,729			1,933,507			7,405,477
Shares redeemed		(56,455,382	)		(84,991,839	)		(5,560,281	)		(12,109,877	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		27,900,758			204,566,890			(3,626,774	)		(4,704,400	)
Total Increase (Decrease)		215,894,502			675,092,545			554,158			7,041,035
Net Assets:
Beginning of period		2,685,504,382			2,010,411,837			78,642,033			71,600,999
End of Period	$	2,901,398,884		$	2,685,504,382		$	79,196,191		$	78,642,033
Undistributed net investment income (loss)	$	16,480,144		$	(668,781	)	$	(77,680	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		2,299,406			8,961,273			130,435			549,274
Shares redeemed		(1,540,601	)		(2,586,030	)		(371,470	)		(885,032	)
		758,805			6,375,243			(241,035	)		(335,758	)
	Large Growth Stock Fund						Large Cap Growth Fund
	For the Six Months Ended 6/30/14			For the year ended 12/31/13			For the Six Months Ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(277,054	)	$	(491,912	)	$	124,783		$	167,600
Net realized gains (loss) from investment transactions		19,279,036			34,772,193			1,742,792			5,420,481
Net realized foreign exchange gain (loss)		(1,157	)		(6,530	)		(584	)		(1,828	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(12,491,022	)		44,513,129			600,649			4,250,969
Net Increase (Decrease) in Net Assets Resulting from Operations		6,509,803			78,786,880			2,467,640			9,837,222
Capital Share Transactions (1):
Shares issued		11,929,342			24,914,584			3,523,706			25,458,062
Shares redeemed		(10,358,456	)		(52,342,379	)		(4,425,813	)		(10,284,187	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		1,570,886			(27,427,795	)		(902,107	)		15,173,875
Total Increase (Decrease)		8,080,689			51,359,085			1,565,533			25,011,097
Net Assets:
Beginning of period		262,357,750			210,998,665			54,761,877			29,750,780
End of Period	$	270,438,439		$	262,357,750		$	56,327,410		$	54,761,877
Undistributed net investment income (loss)	$	(277,054	)	$	—		$	124,667		$	(116	)
(1) Shares Issued and Redeemed:
Shares issued		476,359			1,205,104			295,583			2,504,914
Shares redeemed		(419,336	)		(2,445,057	)		(372,823	)		(962,621	)
		57,023			(1,239,953	)		(77,240	)		1,542,293

The accompanying notes are an integral part of these financial statements.

175

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Large Core Growth Fund						Large Cap Value Fund
	For the six months ended 6/30/14			For the year ended 12/31/13			For the six months ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(179,408	)	$	(90,003	)	$	3,220,048		$	2,234,143
Net realized gains (loss) from investment transactions		10,643,145			17,891,956			5,592,324			32,258,514
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(6,894,757	)		19,480,922			5,583,587			20,425,657
Net Increase (Decrease) in Net Assets Resulting from Operations		3,568,980			37,282,875			14,395,959			54,918,314
Capital Share Transactions (1):
Shares issued		2,742,674			5,819,055			8,757,301			23,655,160
Shares redeemed		(7,897,877	)		(21,397,991	)		(12,773,314	)		(28,177,632	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(5,155,203	)		(15,578,936	)		(4,016,013	)		(4,522,472	)
Total Increase (Decrease)		(1,586,223	)		21,703,939			10,379,946			50,395,842
Net Assets:
Beginning of period		127,756,509			106,052,570			217,351,051			166,955,209
End of Period	$	126,170,286		$	127,756,509		$	227,730,997		$	217,351,051
Undistributed net investment income (loss)	$	(179,408	)	$	—		$	3,220,048		$	—
(1) Shares Issued and Redeemed:
Shares issued		187,327			466,936			412,876			1,291,817
Shares redeemed		(536,400	)		(1,706,084	)		(605,259	)		(1,531,580	)
		(349,073	)		(1,239,148	)		(192,383	)		(239,763	)
	Large Core Value Fund						Index 500 Fund
	For the six months ended 6/30/14			For the year ended 12/31/13			For the six months ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,302,699		$	2,246,788		$	3,330,592		$	6,258,827
Net realized gains (loss) from investment transactions		16,074,099			24,854,649			2,788,618			380,831
Net realized gains (loss) on futures contracts		—			—			361,705			2,032,773
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(2,590,978	)		19,094,604			21,267,507			91,071,550
Net Increase (Decrease) in Net Assets Resulting from Operations		14,785,820			46,196,041			27,748,422			99,743,981
Capital Share Transactions (1):
Shares issued		5,544,389			16,345,085			15,753,356			46,832,775
Shares redeemed		(12,422,753	)		(35,500,124	)		(19,757,864	)		(60,185,970	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(6,878,364	)		(19,155,039	)		(4,004,508	)		(13,353,195	)
Total Increase (Decrease)		7,907,456			27,041,002			23,743,914			86,390,786
Net Assets:
Beginning of period		185,630,327			158,589,325			398,537,211			312,146,425
End of Period	$	193,537,783		$	185,630,327		$	422,281,125		$	398,537,211
Undistributed net investment income (loss)	$	1,310,655		$	7,956		$	3,324,880		$	(5,712	)
(1) Shares Issued and Redeemed:
Shares issued		401,476			1,389,827			1,106,916			3,809,166
Shares redeemed		(913,262	)		(2,898,829	)		(1,363,734	)		(4,753,423	)
		(511,786	)		(1,509,002	)		(256,818	)		(944,257	)

The accompanying notes are an integral part of these financial statements.

176

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Mid Cap Growth Fund						Mid Cap Value Fund
	For the Six Months Ended 6/30/14			For the year ended 12/31/13			For the Six Months Ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(158,464	)	$	(549,006	)	$	1,643,711		$	1,813,860
Net realized gains (loss) from investment transactions		28,777,333			15,386,864			11,338,369			14,415,162
Net realized foreign exchange gain (loss)		232			—			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(22,495,530	)		19,609,170			1,308,307			29,010,915
Net Increase (Decrease) in Net Assets Resulting from Operations		6,123,571			34,447,028			14,290,387			45,239,937
Capital Share Transactions (1):
Shares issued		12,459,983			8,640,070			7,030,094			21,501,173
Shares redeemed		(8,117,305	)		(23,816,956	)		(10,359,279	)		(18,397,799	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		4,342,678			(15,176,886	)		(3,329,185	)		3,103,374
Total Increase (Decrease)		10,466,249			19,270,142			10,961,202			48,343,311
Net Assets:
Beginning of period		120,562,671			101,292,529			172,994,102			124,650,791
End of Period	$	131,028,920		$	120,562,671		$	183,955,304		$	172,994,102
Undistributed net investment income (loss)	$	(158,464	)	$	—		$	1,701,794		$	58,083
(1) Shares Issued and Redeemed:
Shares issued		875,549			741,536			375,653			1,295,099
Shares redeemed		(582,736	)		(2,059,325	)		(542,536	)		(1,124,416	)
		292,813			(1,317,789	)		(166,883	)		170,683
	Mid Core Value Fund						SMID Cap Growth Fund
	For the Six Months Ended 6/30/14			For the year ended 12/31/13			For the Six Months Ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	472,356		$	636,956		$	(278,454	)	$	(321,698	)
Net realized gains (loss) from investment transactions		3,956,024			16,721,213			3,292,821			6,092,451
Net realized foreign exchange gain (loss)		(10,941	)		53,040			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		2,698,069			(921,401	)		(3,860,644	)		12,737,247
Net Increase (Decrease) in Net Assets Resulting from Operations		7,115,508			16,489,808			(846,277	)		18,508,000
Capital Share Transactions (1):
Shares issued		3,639,015			8,636,615			9,659,270			17,648,122
Shares redeemed		(6,067,437	)		(10,419,914	)		(11,019,531	)		(13,107,181	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(2,428,422	)		(1,783,299	)		(1,360,261	)		4,540,941
Total Increase (Decrease)		4,687,086			14,706,509			(2,206,538	)		23,048,941
Net Assets:
Beginning of period		71,874,214			57,167,705			63,626,559			40,577,618
End of Period	$	76,561,300		$	71,874,214		$	61,420,021		$	63,626,559
Undistributed net investment income (loss)	$	502,209		$	29,853		$	(390,179	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		229,289			629,211			500,506			1,051,349
Shares redeemed		(381,919	)		(755,332	)		(580,594	)		(762,625	)
		(152,630	)		(126,121	)		(80,088	)		288,724

The accompanying notes are an integral part of these financial statements.

177

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	SMID Cap Value Fund						Small Cap Growth Fund
	For the Six Months Ended 6/30/14			For the year ended 12/31/13			For the Six Months Ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	184,938		$	225,900		$	(196,760	)	$	(407,779	)
Net realized gains (loss) from investment transactions		4,865,124			5,808,126			2,329,444			13,175,499
Net realized foreign exchange gain (loss)		—			—			(48	)		(342	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		410,801			11,071,8201			(268,651	)		13,509,581
Net Increase (Decrease) in Net Assets Resulting from Operations		5,460,863			17,105,847			1,863,985			26,276,959
Capital Share Transactions (1):
Shares issued		7,888,914			15,808,245			5,544,276			5,896,128
Shares redeemed		(6,201,176	)		(12,945,588	)		(6,392,780	)		(20,353,790	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		1,687,738			2,862,657			(848,504	)		(14,457,662	)
Total Increase (Decrease)		7,148,601			19,968,504			1,015,481			11,819,297
Net Assets:
Beginning of period		63,543,764			43,575,260			89,538,986			77,719,689
End of Period	$	70,692,365		$	63,543,764		$	90,554,467		$	89,538,986
Undistributed net investment income (loss)	$	184,938		$	—		$	(194,292	)	$	2,468
(1) Shares Issued and Redeemed:
Shares issued		403,675			948,116			214,260			263,234
Shares redeemed		(318,331	)		(769,055	)		(249,729	)		(921,368	)
		85,344			179,061			(35,469	)		(658,134	)
	Small Cap Value Fund						Small Cap Index Fund
	For the Six Months Ended 6/30/14			For the year ended 12/31/13			For the Six Months Ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	734,754		$	960,743		$	229,299		$	391,452
Net realized gains (loss) from investment transactions		14,038,619			32,584,526			2,539,191			2,344,619
Net realized gains (loss) on futures contracts		—			—			54,278			413,036
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(1,297,584	)		34,551,777			(879,408	)		14,242,064
Net Increase (Decrease) in Net Assets Resulting from Operations		13,475,789			68,097,046			1,943,360			17,391,171
Capital Share Transactions (1):
Shares issued		8,124,345			21,056,548			7,098,121			14,878,307
Shares redeemed		(12,376,692	)		(26,222,612	)		(3,521,306	)		(9,852,742	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(4,252,347	)		(5,166,064	)		3,576,815			5,025,565
Total Increase (Decrease)		9,223,442			62,930,982			5,520,175			22,416,736
Net Assets:
Beginning of period		238,771,571			175,840,589			64,860,223			42,443,487
End of Period	$	247,995,013		$	238,771,571		$	70,380,398		$	64,860,223
Undistributed net investment income (loss)	$	589,328		$	(145,426	)	$	220,141		$	(9,158	)
(1) Shares Issued and Redeemed:
Shares issued		311,392			945,046			422,007			1,032,176
Shares redeemed		(473,971	)		(1,157,062	)		(210,860	)		(661,220	)
		(162,579	)		(212,016	)		211,147			370,956

The accompanying notes are an integral part of these financial statements.

178

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Developed International Index Fund						International Equity Fund
	For the Six Months Ended 6/30/14			For the year ended 12/31/13			For the Six Months Ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	2,508,548		$	2,463,019		$	3,545,508		$	3,989,620
Net realized gains (loss) from investment transactions		(71,875	)		(1,802,237	)		15,284,543			22,058,244
Net realized gains (loss) on futures contracts		202,353			305,533			—			—
Net realized foreign exchange gain (loss)		3,990			(9,919	)		(168,194	)		(491,798	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		2,477,493			17,706,598			11,445,656			(4,396,386	)
Net Increase (Decrease) in Net Assets Resulting from Operations		5,120,509			18,662,994			30,107,513			21,159,680
Capital Share Transactions (1):
Shares issued		10,638,792			20,155,439			11,138,591			44,671,355
Shares redeemed		(7,788,023	)		(25,371,940	)		(20,676,926	)		(36,241,221	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		2,850,769			(5,216,501	)		(9,538,335	)		8,430,134
Total Increase (Decrease)		7,971,278			13,446,493			20,569,178			29,589,814
Net Assets:
Beginning of period		103,232,739			89,786,246			378,188,693			348,598,879
End of Period	$	111,204,017		$	103,232,739		$	398,757,871		$	378,188,693
Undistributed net investment income (loss)	$	2,087,465		$	(421,083	)	$	(858,797	)	$	(4,399,305	)
(1) Shares Issued and Redeemed:
Shares issued		863,076			1,821,911			479,918			2,004,226
Shares redeemed		(623,758	)		(2,264,532	)		(879,034	)		(1,620,348	)
		239,318			(442,621	)		(399,116	)		383,878
	Emerging Markets Equity Fund						Real Estate Securities Fund
	For the Six Months Ended 6/30/14			For the year ended 12/31/13			For the Six Months Ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	626,625		$	388,529		$	1,387,698		$	1,503,360
Net realized gains (loss) from investment transactions		3,572,120			222,312			2,451,477			6,127,089
Net realized foreign exchange gain (loss)		(60,124	)		(115,528	)		—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		4,508,655			(2,318,916	)		15,565,559			(4,923,112	)
Net Increase (Decrease) in Net Assets Resulting from Operations		8,647,276			(1,823,603	)		19,404,734			2,707,337
Capital Share Transactions (1):
Shares issued		7,168,511			27,080,779			6,395,909			24,229,101
Shares redeemed		(9,584,939	)		(14,936,714	)		(13,048,462	)		(10,792,716	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(2,416,428	)		12,144,065			(6,652,553	)		13,436,385
Total Increase (Decrease)		6,230,848			10,320,462			12,752,181			16,143,722
Net Assets:
Beginning of period		163,178,833			152,858,371			114,290,194			98,146,472
End of Period	$	169,409,681		$	163,178,833		$	127,042,375		$	114,290,194
Undistributed net investment income (loss)	$	84,116		$	(542,509	)	$	1,387,698		$	—
(1) Shares Issued and Redeemed:
Shares issued		633,401			2,380,504			423,690			1,704,606
Shares redeemed		(840,798	)		(1,314,133	)		(864,618	)		(756,923	)
		(207,397	)		1,066,371			(440,928	)		947,683

The accompanying notes are an integral part of these financial statements.

179

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Aggressive Allocation Fund						Moderately Aggressive Allocation Fund
	For the Six Months Ended 6/30/14			For the year ended 12/31/13			For the Six Months Ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(96,839	)	$	(162,159	)	$	(372,104	)	$	(642,003	)
Net realized gains (loss) from investment transactions		237,470			700,038			817,298			3,319,129
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		3,482,654			9,317,125			12,816,237			33,132,324
Net Increase (Decrease) in Net Assets Resulting from Operations		3,623,285			9,855,004			13,261,431			35,809,450
Capital Share Transactions (1):
Shares issued		5,822,678			14,707,924			15,396,360			39,529,743
Shares redeemed		(3,564,963	)		(8,917,612	)		(11,394,620	)		(23,382,869	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		2,257,715			5,790,312			4,001,740			16,146,874
Total Increase (Decrease)		5,881,000			15,645,316			17,263,171			51,956,324
Net Assets:
Beginning of period		56,879,228			41,233,912			231,185,383			179,229,059
End of Period	$	62,760,228		$	56,879,228		$	248,448,554		$	231,185,383
Undistributed net investment income (loss)	$	(96,839	)	$	—		$	(372,104	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		405,188			1,145,505			1,032,608			2,906,051
Shares redeemed		(248,293	)		(696,475	)		(755,171	)		(1,713,234	)
		156,895			449,030			277,437			1,192,817
	Moderate Allocation Fund						Moderately Conservative Allocation Fund
	For the Six Months Ended 6/30/14			For the year ended 12/31/13			For the Six Months Ended 6/30/14			For the year ended 12/31/13
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(553,031	)	$	(1,014,580	)	$	(177,760	)	$	(340,982	)
Net realized gains (loss) from investment transactions		1,839,247			6,848,949			819,837			2,737,934
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		15,618,527			36,953,271			3,898,998			7,065,143
Net Increase (Decrease) in Net Assets Resulting from Operations		16,904,743			42,787,640			4,541,075			9,462,095
Capital Share Transactions (1):
Shares issued		13,785,271			44,282,431			4,750,432			24,189,911
Shares redeemed		(13,014,497	)		(27,856,519	)		(9,009,461	)		(18,227,457	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		770,774			16,425,912			(4,259,029	)		5,962,454
Total Increase (Decrease)		17,675,517			59,213,552			282,046			15,424,549
Net Assets:
Beginning of period		350,164,241			290,950,689			111,452,463			96,027,914
End of Period	$	367,839,758		$	350,164,241		$	111,734,509		$	111,452,463
Undistributed net investment income (loss)	$	(553,031)		$	—		$	(177,760	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		993,700			3,469,988			361,913			1,960,311
Shares redeemed		(937,911	)		(2,154,312	)		(680,589	)		(1,462,960	)
		55,789			1,315,676			(318,676	)		497,351

The accompanying notes are an integral part of these financial statements.

180

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Conservative Allocation Fund
	Six Months Ended 6/30/14			Year Ended 12/31/13
	(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(112,918	)	$	(232,466	)
Net realized gains (loss) from investment transactions		371,406			1,818,220
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		1,861,397			1,470,305
Net Increase (Decrease) in Net Assets Resulting from Operations		2,119,885			3,056,059
Capital Share Transactions (1):
Shares issued		8,610,575			20,212,093
Shares redeemed		(10,316,091	)		(25,687,459	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(1,705,516	)		(5,475,366	)
Total Increase (Decrease)		414,369			(2,419,307	)
Net Assets:
Beginning of period		68,184,880			70,604,187
End of Period	$	68,599,249		$	68,184,880
Undistributed net investment income (loss)	$	(112,918	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		694,256			1,681,772
Shares redeemed		(830,180	)		(2,134,595	)
		(135,924	)		(452,823	)

The accompanying notes are an integral part of these financial statements.

181

Penn Series Funds, Inc.

Financial Highlights

MONEY MARKET FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income from investment operations:
Net investment income (loss)		—	(a)		—	(a)		—	(a)		—	(a)		—	(a)		—	(a)
Total from investment operations		—			—			—			—			—			—
Less distributions:
Net investment income		—	(a)		—	(a)		—	(a)		—	(a)		—	(a)		—	(a)
Total distributions		—			—			—			—			—			—
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total return 1		0.01%	#		0.01%			0.01%			0.01%			0.01%			0.44%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	145,956		$	124,881		$	141,725		$	154,213		$	139,988		$	168,500
Ratio of net expenses to average net assets		0.12%	*		0.16%			0.22%			0.22%			0.33%			0.43%
Ratio of total expenses to average net assets		0.53%	*		0.48%			0.49%			0.49%			0.47%			0.48%
Ratio of net investment income (loss) to average net assets		0.01%	*		0.01%			0.01%			0.01%			0.01%			0.47%
*   Annualized #   Non-annualized
1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. (a)   Distributions were less than one penny per share.
LIMITED MATURITY BOND FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	11.48		$	11.49		$	11.42		$	11.17		$	10.76		$	10.57
Income from investment operations:
Net investment income (loss)		0.03			0.05			0.09			0.13			0.17			0.23
Net realized and unrealized gain (loss) on investment transactions		0.02			(0.06	)		(0.02	)		0.12			0.24			(0.04	)
Total from investment operations		0.05			(0.01	)		0.07			0.25			0.41			0.19
Net asset value, end of period	$	11.53		$	11.48		$	11.49		$	11.42		$	11.17		$	10.76
Total return 1		0.44%	#		(0.09%	)		0.61%			2.24%			3.71%			1.89%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	245,981		$	243,667		$	202,385		$	174,290		$	152,447		$	111,501
Ratio of total expenses to average net assets		0.61%	*		0.57%			0.57%			0.58%			0.58%			0.60%
Ratio of net investment income (loss) to average net assets		0.59%	*		0.60%			0.81%			1.14%			1.56%			2.20%
Portfolio turnover rate		0.59%	#		50%			31%			50%			38%			64%
*   Annualized #   Non-annualized

¹  Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

182

Penn Series Funds, Inc.

Financial Highlights

QUALITY BOND FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012		2011			2010		2009
Net asset value, beginning of period	$	12.75		$	13.14		$	12.73	$	11.56		$	10.90	$	10.36
Income from investment operations:
Net investment income (loss)		0.12			0.25			0.27		0.32			0.28		0.36
Net realized and unrealized gain (loss) on investment transactions		0.33			(0.64	)		0.14		0.85			0.38		0.26
Total from investment operations		0.45			(0.39	)		0.41		1.17			0.66		0.62
Less distributions:
Net investment income		—			—			—		—			—		—	(a)
Net realized gains		—			—			—		—			—		(0.08	)
Total distributions		—			—			—		—			—		(0.08	)
Net asset value, end of period	$	13.20		$	12.75		$	13.14	$	12.73		$	11.56	$	10.90
Total return 1		3.53%	#		(2.97%	)		3.22%		10.12%			6.06%		6.02%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	546,831		$	546,759		$	568,400	$	477,606		$	418,957	$	327,724
Ratio of total expenses to average net assets		0.60%	*		0.56%			0.56%		0.57%			0.58%		0.61%
Ratio of net investment income (loss) to average net assets		1.84%	*		1.91%			2.06%		2.62%			2.48%		3.38%
Portfolio turnover rate		67%	#		47%			32%		44%			69%		87%
*   Annualized #   Non-annualized 1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. (a)   Distributions were less than one penny per share.
HIGH YIELD BOND FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012		2011			2010		2009
Net asset value, beginning of period	$	10.78		$	9.99		$	8.72	$	8.46		$	7.41	$	5.05
Income (loss) from investment operations:
Net investment income (loss)		0.31			0.62			0.61		0.62			0.61		0.56
Net realized and unrealized gain (loss) on investment transactions		0.27			0.17			0.66		(0.36	)		0.44		1.80
Total from investment operations		0.58			0.79			1.27		0.26			1.05		2.36
Net asset value, end of period	$	11.36		$	10.78		$	9.99	$	8.72		$	8.46	$	7.41
Total return 1		5.38%	#		7.91%			14.56%		3.07%			14.17%		46.44%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	197,061		$	188,788		$	179,720	$	141,290		$	131,682	$	103,574
Ratio of total expenses to average net assets		0.83%	*		0.82%			0.82%		0.83%			0.85%		0.87%
Ratio of net investment income (loss) to average net assets		5.68%	*		5.96%			6.52%		7.16%			7.73%		8.97%
Portfolio turnover rate		29%	#		68%			69%		58%			61%		59%

* Annualized

# Non-annualized

¹  Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

183

Penn Series Funds, Inc.

Financial Highlights

FLEXIBLY MANAGED FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	35.72		$	29.22		$	25.46		$	24.71		$	21.69		$	16.33
Income (loss) from investment operations:
Net investment income (loss)		0.23			0.34			0.44			0.40			0.35			0.41
Net realized and unrealized gain (loss) on investment transactions		2.25			6.16			3.32			0.35			2.67			4.95
Total from investment operations		2.48			6.50			3.76			0.75			3.02			5.36
Less distributions:
Net investment income		—			—			—			—			—			—	(a)
Net realized gains		—			—			—			—			—			—
Total distributions		—			—			—			—			—			—
Net asset value, end of period	$	38.20		$	35.72		$	29.22		$	25.46		$	24.71		$	21.69
Total return 1		6.94%	#		22.25%			14.77%			3.04%			13.92%			32.92%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	2,901,399		$	2,685,504		$	2,010,412		$	1,655,254		$	1,583,104		$	1,286,902
Ratio of total expenses to average net assets		0.86%	*		0.83%			0.84%			0.84%			0.85%			0.85%
Ratio of net investment income (loss) to average net assets		1.25%	*		1.04%			1.59%			1.60%			1.55%			2.22%
Portfolio turnover rate		28%	#		63%			65%			83%			67%			89%
*   Annualized #   Non-annualized 1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. Total returns may reflect adjustments to conform with generally accepted accounting principles. (a)  Distributions were less than one penny per share.
BALANCED FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	14.71		$	12.60		$	11.40		$	10.80		$	9.67		$	8.19
Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		(0.03	)		(0.02	)		(0.02	)		(0.02	)		(0.01	)
Capital gain distributions received from affiliated funds		—			—			—			—			—			0.03
Net realized and unrealized gain (loss) on investment transactions		0.81			2.14			1.22			0.62			1.15			1.46
Total from investment operations		0.80			2.11			1.20			0.60			1.13			1.48
Net asset value, end of period		15.51		$	14.71		$	12.60		$	11.40		$	10.80		$	9.67
Total return 1		5.44%	#		16.75%			10.53%			5.56%			11.69%			18.07%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	79,196		$	78,642		$	71,601		$	65,342		$	64,311		$	60,114
Ratio of net expenses to average net assets 2		0.20%	*		0.20%			0.19%			0.18%			0.18%			0.17%
Ratio of total expenses to average net assets 2		0.22%	*		0.22%			0.23%			0.24%			0.24%			0.24%
Ratio of net investment income (loss) to average net assets		(0.20%	)*		(0.20%	)		(0.19%	)		(0.18%	)		(0.18%	)		(0.17%	)
Portfolio turnover rate		3%	#		16%			15%			17%			18%			19%

* Annualized

# Non-annualized

¹  Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

² The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio.

The accompanying notes are an integral part of these financial statements.

184

Penn Series Funds, Inc.

Financial Highlights

LARGE GROWTH STOCK FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012		2011			2010			2009
Net asset value, beginning of period	$	25.11		$	18.05		$	15.20	$	15.44		$	13.22		$	9.25
Income (loss) from investment operations:
Net investment income (loss)		(0.03	)		(0.04	)		0.01		(0.03	)		(0.02	)		—	(a)
Net realized and unrealized gain (loss) on investment transactions		0.66			7.10			2.84		(0.21	)		2.24			3.97
Total from investment operations		0.63			7.06			2.85		(0.24	)		2.22			3.97
Less distributions:
Net investment income		—			—			—		—			—			—	(a)
Total distributions		—			—			—		—			—			—
Net asset value, end of period	$	25.74		$	25.11		$	18.05	$	15.20		$	15.44		$	13.22
Total return 1		2.51%	#		39.11%			18.75%		(1.55%	)		16.79%			42.93%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	270,438		$	262,358		$	210,999	$	176,692		$	174,372		$	143,167
Ratio of total expenses to average net assets		0.93%	*		0.90%			0.91%		0.93%			0.94%			0.97%
Ratio of net investment income (loss) to average net assets		(0.21%	)*		(0.21%	)		0.03%		(0.19%	)		(0.18%	)		0.02%
Portfolio turnover rate		22%	#		36%			35%		33%			43%			58%
*   Annualized #   Non-annualized 1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. (a)  Distributions and net investment income were less than one penny per share.
LARGE CAP GROWTH FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012		2011			2010			2009
Net asset value, beginning of period	$	11.78		$	9.57		$	8.68	$	9.31		$	8.28		$	6.02
Income (loss) from investment operations:
Net investment income (loss)		0.03			0.04			0.01		(0.02	)		(0.01	)		0.02
Net realized and unrealized gain (loss) on investment transactions		0.51			2.17			0.88		(0.61	)		1.04			2.24
Total from investment operations		0.54			2.21			0.89		(0.63	)		1.03			2.26
Net asset value, end of period	$	12.32		$	11.78		$	9.57	$	8.68		$	9.31		$	8.28
Total return 1		4.58%	#		23.09%			10.25%		(6.77%	)		12.44%			37.54%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	56,327		$	54,762		$	29,751	$	37,465		$	33,542		$	27,870
Ratio of net expenses to average net assets		0.89%	*		0.90%			0.90%		0.96%			1.00%			1.00%
Ratio of total expenses to average net assets		0.90%	*		0.90%			0.90%		0.96%			1.00%			1.12%
Ratio of net investment income (loss) to average net assets		0.46%	*		0.40%			0.06%		(0.25%	)		(0.10%	)		0.22%
Portfolio turnover rate		13%	#		107%			97%		153%			176%			121%

* Annualized

# Non-annualized

¹  Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

185

Penn Series Funds, Inc.

Financial Highlights

LARGE CORE GROWTH FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012		2011			2010			2009
Net asset value, beginning of period	$	14.88		$	10.79		$	9.29	$	9.78		$	8.34		$	6.14
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.01	)		0.02		(0.01	)		—			0.03
Net realized and unrealized gain (loss) on investment transactions		0.46			4.10			1.48		(0.48	)		1.44			2.17
Total from investment operations		0.44			4.09			1.50		(0.49	)		1.44			2.20
Less distributions:
Net investment income		—			—			—		—			—			—	(a)
Total distributions		—			—			—		—			—			—
Net asset value, end of period	$	15.32		$	14.88		$	10.79	$	9.29		$	9.78		$	8.34
Total return 1		2.96%	#		37.91%			16.15%		(5.01%	)		17.27%			35.89%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	126,170		$	127,757		$	106,053	$	100,397		$	123,153		$	126,510
Ratio of net expenses to average net assets		0.88%	*		0.88%			0.89%		0.90%			0.71%			0.64%
Ratio of total expenses to average net assets		0.88%	*		0.88%			0.89%		0.90%			0.85%			0.86%
Ratio of net investment income (loss) to average net assets		(0.29%	)*		(0.08%	)		0.17%		(0.11%	)		(0.01%	)		0.50%
Portfolio turnover rate		39%	#		109%			105%		115%			115%			155%
*   Annualized #   Non-annualized
1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. (a)   Distributions were less than one penny per share.
LARGE CAP VALUE FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012		2011			2010			2009
Net asset value, beginning of period	$	20.86		$	15.66		$	13.83	$	14.47		$	12.60		$	9.43
Income (loss) from investment operations:
Net investment income (loss)		0.31			0.21			0.20		0.18			0.11			0.16
Net realized and unrealized gain (loss) on investment transactions		1.09			4.99			1.63		(0.82	)		1.76			3.01
Total from investment operations		1.40			5.20			1.83		(0.64	)		1.87			3.17
Net asset value, end of period	$	22.26		$	20.86		$	15.66	$	13.83		$	14.47		$	12.60
Total return 1		6.71%	#		33.21%			13.23%		(4.42%	)		14.84%			33.62%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	227,731		$	217,351		$	166,955	$	166,056		$	167,918		$	143,038
Ratio of total expenses to average net assets		0.88%	*		0.87%			0.88%		0.89%			0.89%			0.90%
Ratio of net investment income (loss) to average net assets		2.97%	*		1.16%			1.32%		1.24%			0.86%			1.53%
Portfolio turnover rate		13%	#		186%			90%		87%			112%			120%

* Annualized

# Non-annualized

¹  Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

186

Penn Series Funds, Inc.

Financial Highlights

LARGE CORE VALUE FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013		2012		2011			2010		2009
Net asset value, beginning of period	$	13.38		$	10.31	$	8.92	$	9.31		$	8.43	$	7.22
Income (loss) from investment operations:
Net investment income (loss)		0.10			0.15		0.16		0.14			0.12		0.14
Net realized and unrealized gain (loss) on investment transactions		1.01			2.92		1.23		(0.53	)		0.76		1.07
Total from investment operations		1.11			3.07		1.39		(0.39	)		0.88		1.21
Net asset value, end of period	$	14.49		$	13.38	$	10.31	$	8.92		$	9.31	$	8.43
Total return 1,2		8.30%	#		29.78%		15.58%		(4.19%	)		10.44%		16.76%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	193,538		$	185,630	$	158,589	$	143,147		$	158.985	$	149,973
Ratio of net expenses to average net assets		0.89%	*		0.87%		0.88%		0.89%			0.61%		0.54%
Ratio of total expenses to average net assets		0.89%	*		0.87%		0.88%		0.89%			0.75%		0.75%
Ratio of net investment income (loss) to average net assets		1.42%	*		1.25%		1.64%		1.52%			1.46%		1.94%
Portfolio turnover rate		28%	#		59%		38%		51%			35%		62%
*   Annualized #   Non-annualized
1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. 2     The Fund’s total return calculation includes a reimbursement by the sub-adviser. Excluding the effect of this reimbursement from the Fund’s ending net asset value per share, total return for the year ended December 31, 2013 would have been 29.58%.
INDEX 500 FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013		2012		2011			2010		2009
Net asset value, beginning of period	$	14.11		$	10.70	$	9.25	$	9.09		$	7.92	$	6.28
Income (loss) from investment operations:
Net investment income (loss)		0.12			0.21		0.20		0.16			0.14		0.13
Net realized and unrealized gain (loss) on investment transactions		0.86			3.20		1.25		—			1.03		1.51
Total from investment operations		0.98			3.41		1.45		0.16			1.17		1.64
Net asset value, end of period	$	15.09		$	14.11	$	10.70	$	9.25		$	9.09	$	7.92
Total return 1		6.95%	#		31.87%		15.68%		1.76%			14.77%		26.11%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	422,281		$	398,537	$	312,146	$	267,009		$	263,724	$	249,284
Ratio of net expenses to average net assets		0.36%	*		0.34%		0.34%		0.35%			0.35%		0.35%
Ratio of total expenses to average net assets		0.36%	*		0.34%		0.34%		0.36%			0.36%		0.37%
Ratio of net investment income (loss) to average net assets		1.66%	*		1.72%		1.93%		1.71%			1.68%		1.97%
Portfolio turnover rate		1%	#		8%		4%		4%			5%		6%

* Annualized

# Non-annualized

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

187

Penn Series Funds, Inc.

Financial Highlights

MID CAP GROWTH FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	13.59		$	9.94		$	9.37		$	10.16		$	8.01		$	5.42
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.06	)		(0.01	)		(0.04	)		(0.01	)		(0.01	)
Net realized and unrealized gain (loss) on investment transactions		0.73			3.71			0.58			(0.75	)		2.16			2.60
Total from investment operations		0.71			3.65			0.57			(0.79	)		2.15			2.59
Net asset value, end of period	$	14.30		$	13.59		$	9.94		$	9.37		$	10.16		$	8.01
Total return 1		5.22%	#		36.72%			6.08%			(7.78%	)		26.84%			47.79%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	131,029		$	120,563		$	101,293		$	99,083		$	107,064		$	82,895
Ratio of net expenses to average net assets		0.98%	*		0.99%			1.00%			1.00%			1.00%			1.00%
Ratio of total expenses to average net assets		0.98%	*		0.99%			1.00%			1.00%			1.00%			1.01%
Ratio of net investment income (loss) to average net assets		(0.26%	)*		(0.49%	)		(0.12%	)		(0.42%	)		(0.14%	)		(0.22%	)
Portfolio turnover rate		127%	#		80%			129%			110%			106%			102%
*   Annualized #   Non-annualized 1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.
MID CAP VALUE FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	18.51		$	13.59		$	11.80		$	12.59		$	10.01		$	6.81
Income (loss) from investment operations:
Net investment income (loss)		0.18			0.19			0.19			0.09			0.08			0.05
Net realized and unrealized gain (loss) on investment transactions		1.35			4.73			1.60			(0.88	)		2.50			3.15
Total from investment operations		1.53			4.92			1.79			(0.79	)		2.58			3.20
Net asset value, end of period	$	20.04		$	18.51		$	13.59		$	11.80		$	12.59		$	10.01
Total return 1		8.27%	#		36.20%			15.17%			(6.27%	)		25.77%			46.99%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	183,955		$	172,994		$	124,651		$	97,048		$	119,231		$	92,662
Ratio of total expenses to average net assets		0.81%	*		0.82%			0.84%			0.84%			0.84%			0.85%
Ratio of net investment income (loss) to average net assets		1.88%	*		1.21%			1.49%			0.70%			0.71%			0.69%
Portfolio turnover rate		19%	#		43%			43%			106%			37%			43%

* Annualized

# Non-annualized

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

188

Penn Series Funds, Inc.

Financial Highlights

MID CORE VALUE FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	15.33		$	11.87		$	10.37		$	10.75		$	8.57		$	6.80
Income (loss) from investment operations:
Net investment income (loss)		0.10			0.14			0.08			0.03			0.05			0.03
Net realized and unrealized gain (loss) on investment transactions		1.45			3.32			1.42			(0.41	)		2.13			1.74
Total from investment operations		1.55			3.46			1.50			(0.38	)		2.18			1.77
Net asset value, end of period	$	16.88		$	15.33		$	11.87		$	10.37		$	10.75		$	8.57
Total return 1		10.11%	#		29.15%			14.46%			(3.53%	)		25.44%			26.03%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	76,561		$	71,874		$	57,168		$	60,179		$	52,723		$	40,508
Ratio of total expenses to average net assets		1.07%	*		1.08%			1.08%			1.08%			1.11%			1.20%
Ratio of net investment income (loss) to average net assets		1.30%	*		0.97%			0.68%			0.29%			0.49%			0.43%
Portfolio turnover rate		33%	#		166%			75%			51%			75%			116%
*   Annualized #   Non-annualized
1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.
SMID CAP GROWTH FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	19.64		$	13.75		$	11.92		$	12.51		$	10.01		$	6.51
Income (loss) from investment operations:
Net investment income (loss)		(0.08	)		(0.10	)		(0.06	)		(0.09	)		(0.04	)		(0.04	)
Net realized and unrealized gain (loss) on investment transactions		(0.12	)		5.99			1.89			(0.50	)		2.54			3.54
Total from investment operations		(0.20	)		5.89			1.83			(0.59	)		2.50			3.50
Net asset value, end of period	$	19.44		$	19.64		$	13.75		$	11.92		$	12.51		$	10.01
Total return 1		(1.02%	)#		42.84%			15.35%			(4.72%	)		24.85%			54.15%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	61,420		$	63,627		$	40,578		$	26,996		$	25,263		$	21,806
Ratio of net expenses to average net assets		1.06%	*		1.05%			1.05%			1.05%			1.05%			1.05%
Ratio of total expenses to average net assets		1.06%	*		1.07%			1.12%			1.13%			1.23%			1.41%
Ratio of net investment income (loss) to average net assets		(0.86%	)*		(0.61%	)		(0.46%	)		(0.77%	)		(0.36%	)		(0.43%	)
Portfolio turnover rate		51%	#		90%			95%			160%			95%			65%

* Annualized

# Non-annualized

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

189

Penn Series Funds, Inc.

Financial Highlights

SMID CAP VALUE FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	19.14		$	13.87		$	11.66		$	12.56		$	9.90		$	6.80
Income (loss) from investment operations:
Net investment income (loss)		0.06			0.07			0.07			0.03			0.02			0.02
Net realized and unrealized gain (loss) on investment transactions		1.56			5.20			2.14			(0.93	)		2.64			3.08
Total from investment operations		1.62			5.27			2.21			(0.90	)		2.66			3.10
Net asset value, end of period	$	20.76		$	19.14		$	13.87		$	11.66		$	12.56		$	9.90
Total return 1		8.46%	#		38.00%			18.95%			(7.17%	)		26.87%			45.59%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	70,692		$	63,544		$	43,575		$	32,949		$	26,766		$	21,142
Ratio of net expenses to average net assets		1.17%	*		1.14%			1.14%			1.14%			1.14%			1.14%
Ratio of total expenses to average net assets		1.24%	*		1.25%			1.27%			1.31%			1.36%			1.52%
Ratio of net investment income (loss) to average net assets		0.57%	*		0.41%			0.51%			0.27%			0.22%			0.30%
Portfolio turnover rate		29%	#		58%			52%			69%			81%			49%
*   Annualized #   Non-annualized
1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.
SMALL CAP GROWTH FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	26.42		$	19.20		$	18.16		$	20.43		$	17.15		$	10.81
Income (loss) from investment operations:
Net investment income (loss)		(0.06	)		(0.11	)		(0.18	)		(0.15	)		(0.08	)		(0.09	)
Net realized and unrealized gain (loss) on investment transactions		0.64			7.33			1.22			(2.12	)		3.36			6.43
Total from investment operations		0.58			7.22			1.04			(2.27	)		3.28			6.34
Net asset value, end of period	$	27.00		$	26.42		$	19.20		$	18.16		$	20.43		$	17.15
Total return 1		2.20%			37.60%			5.73%			(11.11%	)		19.13%			58.65%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	90,554		$	89,539		$	77,720		$	78,447		$	88,184		$	76,180
Ratio of total expenses to average net assets		1.03%			1.07%			1.10%			1.08%			1.08%			1.11%
Ratio of net investment income (loss) to average net assets		(0.46%	)		(0.50%	)		(0.92%	)		(0.71%	)		(0.45%	)		(0.67%	)
Portfolio turnover rate		11%			143%			103%			125%			125%			163%

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

190

Penn Series Funds, Inc.

Financial Highlights

SMALL CAP VALUE FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013		2012		2011			2010		2009
Net asset value, beginning of period	$	26.16		$	18.83	$	16.21	$	16.07		$	12.68	$	9.99
Income (loss) from investment operations:
Net investment income (loss)		0.08			0.10		0.24		0.08			0.11		0.09
Net realized and unrealized gain (loss) on investment transactions		1.42			7.23		2.38		0.06			3.28		2.60
Total from investment operations		1.50			7.33		2.62		0.14			3.39		2.69
Net asset value, end of period	$	27.66		$	26.16	$	18.83	$	16.21		$	16.07	$	12.68
Total return 1		5.73%	#		38.93%		16.16%		0.87%			26.74%		26.93%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	247,995		$	238,772	$	175,841	$	159,365		$	163,354	$	132,952
Ratio of net expenses to average net assets		1.08%	*		1.14%		1.15%		1.15%			1.15%		1.15%
Ratio of total expenses to average net assets		1.08%	*		1.14%		1.15%		1.15%			1.15%		1.17%
Ratio of net investment income (loss) to average net assets		0.62%	*		0.46%		1.36%		0.51%			0.80%		0.86%
Portfolio turnover rate		23%	#		59%		50%		47%			49%		60%
*   Annualized #   Non-annualized
1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.
SMALL CAP INDEX FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013		2012		2011			2010		2009
Net asset value, beginning of period	$	16.88		$	12.22	$	10.58	$	11.08		$	8.78	$	6.96
Income (loss) from investment operations:
Net investment income (loss)		0.06			0.10		0.16		0.08			0.08		0.07
Net realized and unrealized gain (loss) on investment transactions		0.42			4.56		1.48		(0.58	)		2.22		1.75
Total from investment operations		0.48			4.66		1.64		(0.50	)		2.30		1.82
Net asset value, end of period	$	17.36		$	16.88	$	12.22	$	10.58		$	11.08	$	8.78
Total return 1		2.84%	#		38.13%		15.50%		(4.51%	)		26.20%		26.15%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	70,380		$	64,860	$	42,443	$	29,202		$	23,950	$	21,431
Ratio of net expenses to average net assets		0.60%	*		0.55%		0.55%		0.55%			0.55%		0.55%
Ratio of total expenses to average net assets		0.69%	*		0.71%		0.70%		0.91%			1.30%		2.01%
Ratio of net investment income (loss) to average net assets		0.70%	*		0.71%		1.42%		0.70%			0.89%		0.94%
Portfolio turnover rate		12%	#		17%		18%		18%			56%		22%

* Annualized

# Non-annualized

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

191

Penn Series Funds, Inc.

Financial Highlights

DEVELOPED INTERNATIONAL INDEX FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013		2012		2011			2010		2009
Net asset value, beginning of period	$	12.29		$	10.15	$	8.59	$	9.83		$	9.15	$	7.12
Income (loss) from investment operations:
Net investment income (loss)		0.29			0.28		0.25		0.27			0.20		0.18
Net realized and unrealized gain (loss) on investment transactions		0.29			1.86		1.31		(1.51	)		0.48		1.85
Total from investment operations		0.58			2.14		1.56		(1.24	)		0.68		2.03
Less distributions:
Net investment income		—			—		—		—			—		—	(a)
Total distributions		—			—		—		—			—		—
Net asset value, end of period	$	12.87		$	12.29	$	10.15	$	8.59		$	9.83	$	9.15
Total return 1		4.72%	#		21.08%		18.16%		(12.61%	)		7.43%		28.52%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	111,204		$	103,233	$	89,786	$	61,858		$	55,800	$	38,491
Ratio of net expenses to average net assets		0.65%	*		0.59%		0.59%		0.59%			0.59%		0.59%
Ratio of total expenses to average net assets		0.79%	*		0.92%		1.00%		1.01%			1.21%		2.15%
Ratio of net investment income (loss) to average net assets		4.69%	*		2.50%		2.73%		2.80%			2.27%		2.27%
Portfolio turnover rate		2%	#		9%		2%		1%			6%		1%
*   Annualized #   Non-annualized
1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. (a)   Distributions were less than one penny per share.
INTERNATIONAL EQUITY FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013		2012		2011			2010		2009
Net asset value, beginning of period	$	22.72		$	21.44	$	17.71	$	17.55		$	15.80	$	13.12
Income (loss) from investment operations:
Net investment income (loss)		0.21			0.24		0.25		0.35			0.29		0.26
Net realized and unrealized gain (loss) on investment transactions		1.62			1.04		3.48		(0.19	)		1.46		2.58
Total from investment operations		1.83			1.28		3.73		0.16			1.75		2.84
Less distributions:
Net investment income		—			—		—		—			—		(0.16	)
Net realized gains		—			—		—		—			—		—
Total distributions		—			—		—		—			—		(0.16	)
Net asset value, end of period	$	24.55		$	22.72	$	21.44	$	17.71		$	17.55	$	15.80
Total return 1		8.05%	#		5.97%		21.06%		0.91%			11.08%		21.74%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	398,758		$	378,189	$	348,599	$	309,920		$	320,108	$	270,907
Ratio of total expenses to average net assets		1.15%	*		1.17%		1.17%		1.20%			1.24%		1.27%
Ratio of net investment income (loss) to average net assets		1.85%	*		1.09%		1.30%		1.95%			1.77%		1.89%
Portfolio turnover rate		19%	#		34%		43%		30%			34%		48%

* Annualized

# Non-annualized

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

192

Penn Series Funds, Inc.

Financial Highlights

EMERGING MARKETS EQUITY FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012		2011			2010		2009
Net asset value, beginning of period	$	11.40		$	11.53		$	9.64	$	11.82		$	9.92	$	5.99
Income (loss) from investment operations:
Net investment income (loss)		0.04			0.03			0.03		0.07			0.02		0.03
Net realized and unrealized gain (loss) on investment transactions		0.56			(0.16	)		1.86		(2.25	)		1.88		3.90
Total from investment operations		0.60			(0.13	)		1.89		(2.18	)		1.90		3.93
Less distributions:
Net investment income		—			—			—		—			—		—	(a)
Total distributions		—			—			—		—			—		—
Net asset value, end of period	$	12.00		$	11.40		$	11.53	$	9.64		$	11.82	$	9.92
Total return 1		5.35%	#		(1.13%	)		19.61%		(18.44%	)		19.15%		65.64%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	169,410		$	163,179		$	152,858	$	121,066		$	141,853	$	102,834
Ratio of net expenses to average net assets		1.72%	*		1.68%			1.68%		1.68%			1.62%		1.58%
Ratio of total expenses to average net assets		1.75%	*		1.82%			1.72%		1.91%			2.07%		2.20%
Ratio of net investment income (loss) to average net assets		0.78%	*		0.25%			0.31%		0.63%			0.21%		0.37%
Portfolio turnover rate		23%	#		48%			47%		60%			62%		70%
*   Annualized #   Non-annualized
1     Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. (a)   Distributions were less than one penny per share.
REAL ESTATE SECURITIES FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012		2011 2			2010		2009
Net asset value, beginning of period	$	13.83		$	13.41		$	11.56	$	10.80		$	8.63	$	6.82
Income (loss) from investment operations:
Net investment income (loss)		0.17			0.18			0.16		0.12			0.12		0.19
Net realized and unrealized gain (loss) on investment transactions		2.24			0.24			1.69		0.64			2.05		1.62
Total from investment operations		2.41			0.42			1.85		0.76			2.17		1.81
Net asset value, end of period	$	16.24		$	13.83		$	13.41	$	11.56		$	10.80	$	8.63
Total return 1		17.43%	#		3.13%			16.00%		7.04%			25.14%		26.54%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	127,042		$	114,290		$	98,146	$	76,346		$	68,420	$	50,107
Ratio of total expenses to average net assets		0.98%	*		0.99%			1.01%		1.00%			1.01%		1.03%
Ratio of net investment income (loss) to average net assets		2.29%	*		1.35%			1.27%		1.09%			1.26%		2.93%
Portfolio turnover rate		24%	#		69%			85%		144%			180%		163%

* Annualized

# Non-annualized

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

² Prior to May 1, 2011, the Real Estate Securities Fund was named the REIT Fund.

The accompanying notes are an integral part of these financial statements.

193

Penn Series Funds, Inc.

Financial Highlights

AGGRESSIVE ALLOCATION FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	14.16		$	11.56		$	10.01		$	10.39		$	8.96		$	6.95
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(0.04	)		(0.03	)		(0.03	)		(0.01	)
Net realized and unrealized gain (loss) on investment transactions		0.90			2.64			1.59			(0.35	)		1.46			2.02
Total from investment operations		0.88			2.60			1.55			(0.38	)		1.43			2.01
Less distributions:
Net investment income		—			—			—			—			—			—
Net realized gains		—			—			—			—			—			—	(a)
Total distributions		—			—			—			—			—			—
Net asset value, end of period	$	15.04		$	14.16		$	11.56		$	10.01		$	10.39		$	8.96
Total return 1		6.21%	#		22.49%			15.48%			(3.66%	)		15.96%			28.94%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	62,760		$	56,879		$	41,234		$	28,182		$	24,256		$	13,875
Ratio of net expenses to average net assets 2		0.33%	*		0.33%			0.33%			0.33%			0.33%			0.33%
Ratio of total expenses to average net assets 2		0.33%	*		0.33%			0.35%			0.38%			0.40%			0.48%
Ratio of net investment income (loss) to average net assets		(0.33%	)*		(0.33%	)		(0.33%	)		(0.33%	)		(0.33%	)		(0.16%	)
Portfolio turnover rate		10%	#		30%			24%			29%			28%			39%
*   Annualized #   Non-annualized 1    Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. 2    The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio. (a)   Distributions were less than one penny per share.
MODERATELY AGGRESSIVE ALLOCATION FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	14.80		$	12.42		$	10.93		$	11.13		$	9.72		$	7.64
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(0.04	)		(0.04	)		(0.03	)		(0.02	)
Capital gain distributions received from affiliated funds		—			—			—			—			—			0.01
Net realized and unrealized gain (loss) on investment transactions		0.84			2.42			1.53			(0.16	)		1.44			2.09
Total from investment operations		0.82			2.38			1.49			(0.20	)		1.41			2.08
Less distributions:
Net investment income		—			—			—			—			—			—
Net realized gains		—			—			—			—			—			—	(a)
Total distributions		—			—			—			—			—			—
Net asset value, end of period	$	15.62		$	14.80		$	12.42		$	10.93		$	11.13		$	9.72
Total return 1		5.54%	#		19.16%			13.63%			(1.80%	)		14.51%			27.25%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	248,449		$	231,185		$	179,229		$	134,968		$	119,284		$	61,800
Ratio of net expenses to average net assets 2		0.31%	*		0.31%			0.32%			0.32%			0.33%			0.33%
Ratio of total expenses to average net assets 2		0.31%	*		0.31%			0.32%			0.32%			0.33%			0.34%
Ratio of net investment income (loss) to average net assets		(0.31%	)*		(0.31%	)		(0.32%	)		(0.32%	)		(0.33%	)		(0.18%	)
Portfolio turnover rate		7%	#		23%			25%			30%			26%			49%

* Annualized

# Non-annualized

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

² The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio.

^(a)  Distributions were less than one penny per share.

The accompanying notes are an integral part of these financial statements.

194

Penn Series Funds, Inc.

Financial Highlights

MODERATE ALLOCATION FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	13.67		$	11.98		$	10.80		$	10.73		$	9.56		$	7.93
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(0.04	)		(0.03	)		(0.03	)		(0.02	)
Capital gain distributions received from affiliated funds		—			—			—			—			—			0.01
Net realized and unrealized gain (loss) on investment transactions		0.68			1.73			1.22			0.10			1.20			1.64
Total from investment operations		0.66			1.69			1.18			0.07			1.17			1.63
Less distributions:
Net investment income		—			—			—			—			—			—
Net realized gains		—			—			—			—			—			—	(a)
Total distributions		—			—			—			—			—			—
Net asset value, end of period	$	14.33		$	13.67		$	11.98		$	10.80		$	10.73		$	9.56
Total return 1		4.83%	#		14.11%			10.93%			0.65%			12.24%			20.58%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	367,840		$	350,164		$	290,951		$	224,256		$	199,732		$	100,677
Ratio of net expenses to average net assets 2		0.31%	*		0.31%			0.31%			0.32%			0.32%			0.33%
Ratio of total expenses to average net assets 2		0.31%	*		0.31%			0.31%			0.32%			0.32%			0.33%
Ratio of net investment income (loss) to average net assets		(0.31%	)*		(0.31%	)		(0.31%	)		(0.32%	)		(0.32%	)		(0.20%	)
Portfolio turnover rate		6%	#		20%			20%			26%			22%			30%
*   Annualized #   Non-annualized 1    Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. 2    The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio. (a)   Distributions were less than one penny per share.
MODERATELY CONSERVATIVE ALLOCATION FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	12.98		$	11.87		$	10.96		$	10.67		$	9.75		$	8.40
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(0.04	)		(0.04	)		(0.03	)		(0.02	)
Capital gain distributions received from affiliated funds		—			—			—			—			—			0.02
Net realized and unrealized gain (loss) on investment transactions		0.55			1.15			0.95			0.33			0.95			1.35
Total from investment operations		0.53			1.11			0.91			0.29			0.92			1.35
Less distributions:
Net investment income		—			—			—			—			—			—	(a)
Net realized gains		—			—			—			—			—			—
Total distributions		—			—			—			—			—			—
Net asset value, end of period	$	13.51		$	12.98		$	11.87		$	10.96		$	10.67		$	9.75
Total return 1		4.08%	#		9.35%			8.30%			2.72%			9.32%			16.19%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	111,735		$	111,452		$	96,028		$	89,677		$	72,839		$	45,014
Ratio of net expenses to average net assets 2		0.32%	*		0.32%			0.33%			0.33%			0.33%			0.33%
Ratio of total expenses to average net assets 2		0.32%	*		0.32%			0.33%			0.33%			0.34%			0.36%
Ratio of net investment income (loss) to average net assets		(0.32%	)*		(0.32%	)		(0.33%	)		(0.33%	)		(0.33%	)		(0.22%	)
Portfolio turnover rate		5%	#		28%			37%			30%			35%			46%

* Annualized

# Non-annualized

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

² The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio.

^(a) Distributions were less than one penny per share.

The accompanying notes are an integral part of these financial statements.

195

Penn Series Funds, Inc.

Financial Highlights

CONSERVATIVE ALLOCATION FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
				2013			2012			2011			2010			2009
Net asset value, beginning of period	$	12.26		$	11.74		$	11.13		$	10.71		$	10.01		$	9.05
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(0.04	)		(0.04	)		(0.03	)		(0.02	)
Capital gain distributions received from affiliated funds		—			—			—			—			—			0.02
Net realized and unrealized gain (loss) on investment transactions		0.41			0.56			0.65			0.46			0.73			0.97
Total from investment operations		0.39			0.52			0.61			0.42			0.70			0.97
Less distributions:
Net investment income		—			—			—			—			—			—	(a)
Net realized gains		—			—			—			—			—			(0.01	)
Total distributions		—			—			—			—			—			(0.01	)
Net asset value, end of period	$	12.65		$	12.26		$	11.74		$	11.13		$	10.71		$	10.01
Total return 1		3.18%	#		4.43%			5.48%			3.92%			6.89%			10.80%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	68,599		$	68,185		$	70,604		$	63,096		$	45,528		$	31,405
Ratio of net expenses to average net assets 2		0.33%	*		0.33%			0.33%			0.33%			0.33%			0.33%
Ratio of total expenses to average net assets 2		0.33%	*		0.33%			0.33%			0.34%			0.35%			0.38%
Ratio of net investment income (loss) to average net assets		(0.33%	)*		(0.33%	)		(0.33%	)		(0.33%	)		(0.33%	)		(0.21%	)
Portfolio turnover rate		13%	#		38%			44%			39%			46%			73%

* Annualized

# Non-annualized

¹ Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

² The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio.

^(a)  Distributions were less than one penny per share.

The accompanying notes are an integral part of these financial statements.

196

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2014 (Unaudited)

1 — ORGANIZATION

Penn Series Funds, Inc. (“Penn Series”) was incorporated in Maryland on April 22, 1982. Penn Series is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. Penn Series is open only to purchasers of The Penn Mutual Life Insurance Company (“Penn Mutual”) and The Penn Insurance and Annuity Company insurance contracts and certain of Penn Mutual’s employee benefit plans.

Penn Series is presently offering shares in its Money Market, Limited Maturity Bond, Quality Bond, High Yield Bond, Flexibly Managed, Balanced, Large Growth Stock, Large Cap Growth, Large Core Growth, Large Cap Value, Large Core Value, Index 500, Mid Cap Growth, Mid Cap Value, Mid Core Value, SMID Cap Growth, SMID Cap Value, Small Cap Growth, Small Cap Value, Small Cap Index, Developed International Index, International Equity, Emerging Markets Equity, Real Estate Securities, Aggressive Allocation, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation and Conservative Allocation Funds (each a “Fund” and collectively, the “Funds”). Penn Series also has the authority to issue shares in three additional funds, each of which would have their own investment objective and policies.

Fund of Funds (“FOFs”) — Each Penn Series FOF seeks to achieve its investment objective by investing in other Penn Series Funds (“Underlying Funds”) and uses asset allocation strategies to determine how much to invest in the Underlying Funds. Each of the following Funds is a Penn Series FOFs: Balanced, Aggressive Allocation, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation and Conservative Allocation Funds.

2 — SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are followed by Penn Series in the preparation of its financial statements. The preparation of financial statements in accordance with the accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and those differences could be material.

SECURITY VALUATION:

Money Market Fund — Investments in securities are valued using the amortized cost method as permitted by Rule 2a-7 under the Investment Company Act of 1940, which involves initially valuing investments at cost and thereafter assuming a constant amortization to maturity of any premium or discount. This method approximates market value.

Limited Maturity Bond, Quality Bond, High Yield Bond, Flexibly Managed, Large Growth Stock, Large Cap Growth, Large Core Growth, Large Cap Value, Large Core Value, Index 500, Mid Cap Growth, Mid Cap Value, Mid Core Value, SMID Cap Growth, SMID Cap Value, Small Cap Growth, Small Cap Value, Small Cap Index, Developed International Index, International Equity, Emerging Markets Equity, Real Estate Securities Funds — Portfolio securities listed on a securities exchange or an automated quotation system for which quotations are readily available, including securities traded over the counter, are valued at the last quoted sale price on the principal exchange or market on which they are traded on the valuation date or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. Securities valued according to these evaluation methods are categorized as Level 1 in the fair value hierarchy described below. Debt and fixed income securities are valued by recognized independent third-party valuation services, employing valuation methodologies that utilize actual market transactions, broker-dealer supplied valuations, and matrix pricing. Matrix pricing for corporate bonds, floating rate notes, municipal securities and U.S. government and government agency obligations considers yield or price of bonds of comparable quality, coupon, maturity and type and, for asset backed securities, commercial mortgage securities and U.S. government agency mortgage securities, also considers prepayment speed assumptions and attributes and performance of the underlying collateral. Securities valued according to these valuation methods are generally categorized as Level 2 in the fair value hierarchy described below. To the extent that bid prices are provided by the pricing service, the Funds will use the bid price. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates.

Options are valued at the last traded price on the market where such options are principally traded or, if there was no trade on such day, at the last bid quote. Futures contracts are valued at the last settlement price on the market where such

197

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2014 (Unaudited)

futures contracts are principally traded. Although derivatives may be subject to netting provisions, as discussed further in Note 7, derivatives held are valued at their gross amounts.

To assess the continuing appropriateness of third party pricing service security valuations, the Adviser or sub-adviser, as applicable, or the fund accounting service provider, who is subject to oversight by the Administrator, regularly monitor the prices and compare prices to alternate sources where applicable. Pricing challenges are issued for valuation differences exceeding certain tolerances or when considered not reflective of the market by the Adviser or sub-adviser, as applicable.

Securities for which market quotations are not readily available are valued at fair value prices determined using methods approved by the Penn Series Board of Directors. The Penn Series Valuation Committee (the “Valuation Committee”), established by and subject to oversight by the Board of Directors, monitors pricing related policies and procedures and approves all fair value determinations. The Valuation Committee consists of representatives from Independence Capital Management, Inc. (“ICMI” or the “Adviser”), the investment adviser to each of the Funds, and Penn Mutual, the administrator to the Funds (the “Administrator”). The Valuation Committee regularly makes good faith judgments, using sources and information obtained, including recommendations and supporting rationales and inputs from the Adviser or the applicable sub-adviser, to establish and /or adjust fair valuations of securities as events occur and circumstances warrant. The information and inputs may include but are not limited to cost of the security, last sale price, private transaction trading prices, comparable publically traded security prices, discount rates, publically disclosed news stories and regulatory filings, estimated cash flows and yield curves. As part of its procedures, the Valuation Committee monitors the fair valued securities, considers additional news or significant developments relative to the specific security, reviews the valuations with the Adviser or respective sub-adviser on a regular basis and applies back testing procedures to valuations as applicable. Reasons for which securities may be valued in this manner include, but are not limited to, trading on an exchange for a security has been halted, suspended or has not begun, a security has been de-listed from a national exchange, trading on a security’s primary market is temporarily closed at a time when, under normal conditions, it would be open, or valuation by a third party pricing service is currently not available or is no longer available.

Certain events may occur between the time that foreign markets close, on which securities held by the Fund principally trade, and the time at which the Fund’s NAV is calculated. These securities are valued at a fair value utilizing an independent third party valuation service in accordance with procedures adopted by the Fund’s Board of Directors. The methodology and procedures followed by the valuation service consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, ETFs, and certain indexes as well as prices for similar securities. Securities valued using such valuation service are classified as Level 2 of the fair value hierarchy as these adjustment factors are considered other observable inputs to the valuation. Values from the valuation service are applied in the event that there is a movement in the U.S. market that exceeds a specific threshold that has been established by the Valuation Committee. The Valuation Committee has also established a “confidence interval”, which is used to determine the level of historical correlation between the value of a specific foreign security and movements in the U.S. market before a particular security will be fair valued when the threshold is exceeded. In the event that the threshold established by the Valuation Committee is exceeded on a specific day, the Funds shall value the non-U.S. securities in their portfolios that exceed the applicable “confidence interval” based upon the adjusted prices provided by the fair valuation service.

The determination of a security’s fair value price often involves the consideration of a number of subjective factors, and is therefore subject to the unavoidable risk that the value assigned to a security may be higher or lower than the security’s value would be if a reliable market quotation for the security was readily available.

Balanced, Aggressive Allocation, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation and Conservative Allocation Funds — The valuation of each Fund’s investment in its Underlying Funds is based on the net asset values of the Underlying Funds each business day.

Fair value measurements are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. Inputs refer broadly to the assumptions that market participants would use in pricing an asset. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own

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assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. These inputs are summarized into three broad levels as follows:

• Level 1 — quoted prices in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

Transfers between levels 1 and 2 during the six months ended June 30, 2014, if any, are shown as notes on the Schedule of Investments of the individual fund.

Significant Level 3 items at June 30, 2014 consist of $407,090 of equities in the Large Growth Stock Fund which were not publicly trading. The unobservable inputs used in valuing these securities include new rounds of financing, negotiated transactions of significant size between other investors in the company, relevant market valuations of peer companies and strategic events affecting the company. Significant increases (decreases) in the valuation indicated by the new rounds of financing, valuations observed through negotiated transactions between other investors in the company or changes in the market valuation of relevant peer companies would result in directionally similar changes to the fair value. Fair value determinations are reviewed and updated on a regular basis and as information becomes available, including actual purchase and sale transactions of the issue.

Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis: market value of investment securities, assets and liabilities at the current rate of exchange; purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions.

The Funds do not isolate the portion of realized and unrealized gains and losses on investments which is due to changes in the foreign exchange rate from that which is due to changes in market prices of equity securities. Such fluctuations are included with net realized and unrealized gain or loss from investments.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar-denominated transactions as a result of, among other factors, the level of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

Loan Agreements — Certain Funds may invest in loan agreements, also known as bank loans, which represent an interest in amounts owed by a borrower to a syndication of lenders. Bank loans may involve multiple loans with the same borrower under a single credit agreement (each loan, a tranche), and each tranche may have different terms and associated risks. A bank or other financial institution typically acts as the agent and administers a bank loan in accordance with the associated credit agreement. Bank loans are generally noninvestment grade and often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Funds may buy and sell bank loans in the form of either loan assignments or loan participations. A loan assignment transfers all legal, beneficial, and economic rights to the buyer. Although loan assignments continue to be administered by the agent, the buyer acquires direct rights against the borrower. In many cases, a loan assignment requires the consent of both the borrower and the agent. In contrast, a loan participation generally entitles the buyer to receive the cash flows from principal, interest, and any fee payments that the seller is entitled to receive from the borrower; however, the seller continues to hold legal title to the loan. As a result, with loan participations, the buyer generally has no right to enforce compliance with terms of the credit agreement against the borrower, and the buyer is subject to the credit risk of both the borrower and the seller. Bank loans often have extended settlement periods, during which the fund is subject to nonperformance by the counterparty.

SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES: Security transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date and interest income is accrued as earned. Discounts and premiums are accreted and amortized using the effective interest method. The cost of investment securities sold is determined by using the specific identification method for both financial reporting and income tax purposes. Expenses directly attributable to a

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Fund are directly charged. Common expenses of the Funds are allocated using methods approved by the Board of Directors, generally based on average net assets. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses associated with the Underlying Funds of the FOFs.

DIVIDENDS TO SHAREHOLDERS: Except for the Money Market Fund, all or a portion of each Fund’s undistributed net investment income and accumulated net realized gain on investment and foreign exchange transactions, if any, at December 31, 2013 were deemed distributed as consent dividends to each respective Fund’s shareholders in place of regular distributions. As consent dividends, shareholders of each Fund agree to treat their share of undistributed net investment income and accumulated net realized gain on investment and foreign exchange transactions, if any, at December 31, 2013, respectively, as dividend income and net capital gains for tax purposes. In the case of the Money Market Fund, dividends paid from undistributed net investment income and accumulated net realized gain on investments are declared daily and paid monthly.

Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations which may differ from net investment income and net realized capital gains recorded in accordance with accounting principles generally accepted in the United States. To the extent that these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification. Distributions from net realized gains may involve short-term capital gains, which are included as ordinary income for tax purposes.

The character of distributions received from real estate investment trusts (“REITs”) held by a Fund is generally comprised of net investment income, capital gains, and return of capital. It is the policy of the Funds to estimate the character of distributions received from the underlying REITs based on historical data provided by the REITs. As of year-end, differences between the estimated and actual amounts are reflected in a Fund’s records.

3 — INVESTMENT ADVISORY AND OTHER CORPORATE SERVICES

Investment Advisory Services

ICMI, a wholly owned subsidiary of Penn Mutual Life, serves as investment adviser to each of the Funds. With the exception of the Money Market, Limited Maturity, Quality Bond, Balanced, Aggressive, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation and Conservative Allocation Funds, ICMI has entered into sub-advisory agreements to provide investment management services to each of the Funds.

Each of the Funds pay ICMI, on a monthly basis, an advisory fee based on the average daily net assets of the Fund, at the following rates pursuant to the investment advisory agreements:

Fund	Sub-Adviser	Investment Advisory Fees (As a Percentage of the Average Daily Net Assets of the Fund)
Money Market Fund	None	0.33% of the first $200,000,000; 0.31% of the next $150,000,000; 0.29% of the next $150,000,000; 0.27% over $500,000,000.
Limited Maturity Bond Fund	None	0.46% of the first $200,000,000; 0.44% of the next $150,000,000; 0.42% of the next $150,000,000; 0.40% over $500,000,000.
Quality Bond Fund	None	0.46% of the first $200,000,000; 0.44% of the next $150,000,000; 0.42% of the next $150,000,000; 0.40% over $500,000,000.

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Fund	Sub-Adviser	Investment Advisory Fees (As a Percentage of the Average Daily Net Assets of the Fund)
High Yield Bond Fund	T. Rowe Price Associates, Inc	0.56% of the first $250,000,000; 0.53% over $250,000,000.
Flexibly Managed Fund	T. Rowe Price Associates, Inc	0.72% of the first $500,000,000; 0.70% of the next $2,000,000,000; 0.68% of the next $1,500,000,000; 0.65% of the next $1,000,000,000; 0.62% over $5,000,000,000.
Large Growth Stock Fund	T. Rowe Price Associates, Inc	0.72% of the first $250,000,000; 0.68% of the next $250,000,000; 0.65% over $500,000,000.
Large Cap Growth Fund	Massachusetts Financial Services Company	0.55%
Large Core Growth Fund	Wells Capital Management, Inc.	0.60%
Large Cap Value Fund	Loomis, Sayles & Company, LP	0.67% of the first $150,000,000; 0.65% over $150,000,000.
Large Core Value Fund	Eaton Vance Management	0.67% of the first $150,000,000; 0.65% of the next $250,000,000; 0.60% over $400,000,000.
Index 500 Fund	SSgA Fund Management, Inc.	0.14% of the first $150,000,000; 0.13% of the next $150,000,000; 0.12% over $300,000,000.
Mid Cap Growth Fund	Ivy Investment Management Company	0.70%
Mid Cap Value Fund	Neuberger Berman Management, Inc.	0.55% of the first $250,000,000; 0.525% of the next $250,000,000; 0.50% of the next $250,000,000; 0.475% of the next $250,000,000; 0.45% of the next $500,000,000; 0.425% over $1,500,000,000.
Mid Core Value Fund	American Century Investment Management, Inc.	0.72%
SMID Cap Growth Fund	Wells Capital Management, Inc.	0.75%
SMID Cap Value Fund	Alliance Bernstein, LP	0.95%
Small Cap Growth Fund	Janus Capital Management LLC	0.80% of the first $25,000,000; 0.75% of the next $25,000,000; 0.70% over $50,000,000.
Small Cap Value Fund	Goldman Sachs Asset Management, LP	0.75% of the first $50,000,000; 0.725% of the next $50,000,000; 0.70% over $100,000,000.
Small Cap Index Fund	SSgA Fund Management, Inc.	0.30%
Developed International Index Fund	SSgA Fund Management, Inc.	0.30%
International Equity Fund	Vontobel Asset Management, Inc.	0.86% of the first $227,000,000; 0.84% of the next $227,000,000; 0.82% over $454,000,000.

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Fund	Sub-Adviser	Investment Advisory Fees (As a Percentage of the Average Daily Net Assets of the Fund)
Emerging Markets Equity Fund	Morgan Stanley Investment Management, Inc.	1.18% of the first $2,500,000,000; 1.00% over $2,500,000,000.
Real Estate Securities Fund	Cohen & Steers Capital Management, Inc.	0.70%
Aggressive Allocation Fund	None	0.12% of the first $200,000,000; 0.11% of the next $150,000,000; 0.10% of the next $150,000,000; 0.09% over $500,000,000.
Moderately Aggressive Allocation Fund	None	0.12% of the first $200,000,000; 0.11% of the next $150,000,000; 0.10% of the next $150,000,000; 0.09% over $500,000,000.
Moderate Allocation Fund	None	0.12% of the first $200,000,000; 0.11% of the next $150,000,000; 0.10% of the next $150,000,000; 0.09% over $500,000,000.
Moderately Conservative Allocation Fund	None	0.12% of the first $200,000,000; 0.11% of the next $150,000,000; 0.10% of the next $150,000,000; 0.09% over $500,000,000.
Conservative Allocation Fund	None	0.12% of the first $200,000,000; 0.11% of the next $150,000,000; 0.10% of the next $150,000,000; 0.09% over $500,000,000.

For providing investment management services to the Funds, ICMI pays each sub-adviser, on a monthly basis, a sub-advisory fee.

Administrative and Corporate Services

Under an administrative and corporate services agreement, Penn Mutual serves as administrative and corporate services agent for Penn Series. Each of the Funds pays Penn Mutual, on a quarterly basis, an annual fee equal to 0.15% of the Fund’s average daily net assets.

Accounting Services

Under an accounting services agreement, BNY Mellon Investment Servicing (US), Inc. (“BNY Mellon”) serves as accounting agent for Penn Series. Each of the Funds, except the FOFs, International Equity Fund, Emerging Markets Equity Fund and Developed International Index Fund, pays BNY Mellon, on a monthly basis, an annual fee based on the average daily net assets of the Fund equal to 0.070% for the first $100 million, 0.050% for the next $200 million, 0.030% for the next $300 million and 0.020% thereafter. With the exception of the FOFs, International Equity Fund, Emerging Markets Equity Fund, Developed International Index Fund and Money Market Fund, the minimum annual fee each Fund must pay is $27,500. The annual accounting fee for each of the FoFs shall be an asset based fee of 0.01% of FOF’s average assets, exclusive of out-of-pocket expenses. Each FOF’s minimum annual fee is $12,000. The minimum annual fee is $48,000 for each of the International Equity Fund, Emerging Markets Equity Fund and Developed International Index Fund. The Money Market Fund pays no minimum annual fee. Each of the International Equity, Emerging Markets Equity and Developed International Index Funds pay BNY Mellon 0.080% for the first $100 million, 0.060% for the next $300 million, 0.040% for the next $200 million, and 0.030% thereafter.

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Transfer Agent Services

Under a transfer agency agreement, BNY Mellon serves as transfer agent for Penn Series.

Custodial Services

The Bank of New York Mellon, Inc., serves as custodian for Penn Series. In addition to transaction charges and out-of-pocket expenses, each of the Funds pay The Bank of New York Mellon, Inc., on a monthly basis, an annual custody fee of 0.007% for U.S. securities. The Bank of New York Mellon, Inc. serves as foreign custodian for Penn Series. There is a separate custody fee schedule for foreign securities.

Expenses and Limitations Thereon

Each Fund bears all expenses of its operations other than those incurred by ICMI and its sub-adviser under its respective investment advisory agreement and those incurred by Penn Mutual under its administrative and corporate services agreement. ICMI and Penn Mutual have agreed to waive fees and/or reimburse expenses to the extent the Fund’s total expense ratio (excluding nonrecurring account fees, fees on portfolio transactions, such as exchange fees, dividends and interest on securities sold short, Acquired Fund Fees and Expenses, service fees, interest, taxes, brokerage commissions, other capitalized expenses and other non-routine expenses or extraordinary expenses not incurred in the ordinary course of a Fund’s business, but including investment advisory and administrative and corporate services fees) exceeds the applicable expense limitation for the Fund. The expense limitations for the Funds are as follows:

Fund	Expense Limitation		Fund	Expense Limitation
Money Market		0.64%	SMID Cap Value		1.26%
Limited Maturity Bond		0.74%	Small Cap Growth		1.13%
Quality Bond		0.73%	Small Cap Value		1.02%
High Yield Bond		0.92%	Small Cap Index		0.74%
Flexibly Managed		0.94%	Developed International Index		0.94%
Balanced		0.79%	International Equity		1.20%
Large Growth Stock		1.02%	Emerging Markets Equity		1.78%
Large Cap Growth		0.89%	Real Estate Securities		1.02%
Large Core Growth		0.90%	Aggressive Allocation*		0.40%
Large Cap Value		0.96%	Moderately Aggressive
Large Core Value		0.96%	Allocation*		0.34%
Index 500		0.42%	Moderate Allocation*		0.34%
Mid Cap Growth		1.00%	Moderately Conservative
Mid Cap Value		0.83%	Allocation*		0.35%
Mid Core Value		1.11%	Conservative Allocation*		0.38%
SMID Cap Growth		1.07%

* For FoFs, with the exception of the Balanced Fund, the operating expense limit applies only at the Fund level and does not limit the fees indirectly incurred by the FOFs through their investments in the Underlying Funds.

Effective September 10, 2009, Penn Series, on behalf of its Money Market Fund, ICMI, and Penn Mutual, entered into an agreement whereby ICMI and Penn Mutual may temporarily and voluntarily waive fees and/or reimburse expenses in excess of their current fee waiver and expense reimbursement commitments in an effort to maintain a minimum net distribution yield for the Money Market Fund. Under the agreement, ICMI and Penn Mutual may, subject to certain minimum yield criteria, as well as a prospective three-year reimbursement period, recapture from the Money Market Fund any fees or expenses waived and/or reimbursed under this arrangement. These reimbursement payments by the Fund to ICMI and/or Penn Mutual are considered “extraordinary expenses” and are not subject to any net operating expense limitations in effect at the time of such payment. This recapture could negatively affect the Fund’s future yield.

Effective May 1, 2014, Penn Mutual has eliminated the voluntary waiver on the Index 500 Fund, which waived administrative and corporate services fees so that the Fund’s total expenses did not exceed 0.35%. Effective May 1, 2014,

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Penn Mutual and ICMI have eliminated their voluntarily waivers on the Emerging Markets Equity Fund, which waived a portion of their fees so that the Fund’s total expenses did not exceed 1.68%. During the period January 1, 2014 through April 30, 2014, ICMI voluntarily waived $31,604 of advisor fees in the Emerging Markets Equity Fund.

If, at the end of each month, there is no liability of ICMI and Penn Mutual to pay the Funds such excess amount, and if payments of the advisory fee or administrative and corporate services fee at the end of prior months during the preceding three fiscal years have been reduced in excess of that required to maintain expenses within the expense limitation, such excess reduction is eligible to be recaptured by ICMI and Penn Mutual and, if recaptured, would become payable by the Funds to ICMI and Penn Mutual along with the advisory fee or administrative and corporate services fee for that month, as applicable. Penn Mutual and/or ICMI’s election not to recapture the amount of any reduction and reimbursement to which it is entitled in no way impairs the rights of Penn Mutual and/or ICMI to subsequently recapture such amount, provided that such amount remains eligible for recapture and would not cause the Fund to exceed its expense limit for that fee payment period.

As of June 30, 2014, the following Funds had waived and/or reimbursed administrative and corporate services fees that are subject to potential recapture by Penn Mutual through the periods stated below. If not recaptured, the waiver and/or reimbursed administrative and corporate services fees will expire according to the table below:

	December 31, 2014		December 31, 2015		December 31, 2016		December 31, 2017
Money Market Fund	$	128,050	$	122,590	$	176,604	$	112,801
Balanced Fund		33,707		22,964		20,510		7,278

As of June 30, 2014, the following Funds had waived and/or reimbursed advisory fees that are subject to potential recapture by ICMI through the periods stated below. If not recaptured, the waived and/or reimbursed advisory fees will expire according to the table below:

	December 31, 2014		December 31, 2015		December 31, 2016		December 31, 2017
Money Market Fund	$	272,183	$	262,764	$	247,479	$	156,011
SMID Cap Growth Fund		20,314		23,866		10,433		3,212
SMID Cap Value Fund		48,883		49,667		61,894		22,348
Small Cap Index Fund		97,702		54,153		85,442		31,741
Developed International Index Fund		257,004		302,369		329,477		72,559
Emerging Markets Equity Fund		53,272		33,809		61,004		—
Aggressive Allocation Fund		11,701		6,330		2,362		179
Conservative Allocation Fund		2,891		2,344		31		88

During the six months ended June 30, 2014, previously waived advisory fees were recaptured by ICMI. The recaptured fees are shown as Recaptured advisory fees on the statement of operations and are as follows:

Emerging Markets Equity Fund	$	62,662
Aggressive Allocation Fund		599
Conservative Allocation Fund		1,285

Total fees of $176,500 were paid to Directors of Penn Series, who are not interested persons of Penn Series, for the six months ended June 30, 2014. Director’s who are also employees of ICMI or its affiliates and Officers of the Company receive no compensation from the Company for their services. The Company’s Chief Compliance Officer, who is not an employee of ICMI or its affiliates, receive compensation from the Company for services.

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4 — RELATED PARTY TRANSACTIONS

Certain benefit plans of Penn Mutual own annuity contracts that are invested in the Penn Series Funds. The benefit plan assets that are invested in the Penn Series Funds at June 30, 2014 are as follows:

Money Market Fund	$	5,710,423
Limited Maturity Bond Fund		47,133,077
Quality Bond Fund		40,429,225
High Yield Bond Fund		5,479,694
Flexibly Managed Fund		59,182,687
Large Growth Stock Fund		40,827,651
Index 500 Fund		20,863,030
Mid Cap Growth Fund		5,135,973
Mid Core Value Fund		4,165,365
SMID Cap Growth Fund		4,759,524
SMID Cap Value Fund		5,076,030
Small Cap Growth Fund		3,821,145
Small Cap Value Fund		9,008,505
International Equity Fund		20,372,151
Large Core Value		32,604,793
Emerging Markets Equity		3,566,354
Small Cap Index Fund		3,360,809
Developed International Index		3,086,328

Certain Funds affect trades for security purchase and sale transactions through brokers that are affiliates of the Adviser or the sub-advisers. Commissions paid on those trades from the Funds for the six months ended June 30, 2014 were as follows:

SMID Cap Growth Fund	$	58
Small Cap Value Fund		1,996
Emerging Markets Equity Fund		3,068

5 — PURCHASES AND SALES OF SECURITIES

During the six months ended June 30, 2014, the Funds made the following purchases and sales of portfolio securities, other than short-term securities:

	U.S. Government Securities				Other Investment Securities
	Purchases		Sales		Purchases		Sales
Limited Maturity Bond Fund	$	28,091,422	$	59,968,088	$	78,473,278	$	23,910,817
Quality Bond Fund		198,222,662		254,482,168		139,281,237		100,319,414
High Yield Bond Fund		—		—		53,055,476		53,567,827
Flexibly Managed Fund		12,789,898		49,038,609		723,789,545		764,783,508
Balanced Fund		—		—		2,350,486		5,974,770
Large Growth Stock Fund		—		—		56,625,212		58,553,276
Large Cap Growth Fund		—		—		6,806,622		9,020,820
Large Core Growth Fund		—		—		48,611,951		57,847,986
Large Cap Value Fund		—		—		27,545,908		31,139,380
Large Core Value Fund		—		—		51,247,322		63,450,548
Index 500 Fund		—		—		4,249,658		9,979,331
Mid Cap Growth Fund		—		—		153,453,776		158,973,266
Mid Cap Value Fund		—		—		35,002,034		31,277,802
Mid Core Value Fund		—		—		23,630,855		25,160,124

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	U.S. Government Securities				Other Investment Securities
	Purchases		Sales		Purchases		Sales
SMID Cap Growth Fund		—		—	$	32,097,550	$	34,990,120
SMID Cap Value Fund		—		—		18,810,372		18,999,502
Small Cap Growth Fund		—		—		8,932,319		11,621,127
Small Cap Value Fund		—		—		52,864,886		58,336,530
Small Cap Index Fund		—		—		9,734,033		8,109,014
Developed International Index Fund		—		—		7,678,168		1,707,785
International Equity Fund		—		—		72,056,287		87,368,369
Emerging Markets Equity Fund		—		—		37,916,631		37,001,082
Real Estate Securities Fund		—		—		28,344,694		31,274,310
Aggressive Allocation Fund		—		—		7,500,377		5,569,280
Moderately Aggressive Allocation Fund		—		—		20,528,746		16,843,476
Moderate Allocation Fund		—		—		21,277,100		22,761,996
Moderately Conservative Allocation Fund		—		—		6,076,595		10,191,808
Conservative Allocation Fund		—		—		8,641,752		10,621,257

6 — FEDERAL INCOME TAXES

Each Fund has qualified and intends to continue to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code for federal income tax purposes. As such, each Fund is required to distribute all investment company taxable income and net capital gains, if any, to its shareholders in order to avoid the imposition of entity-level federal, state, and local income taxes as well as an entity-level excise tax. Except for the Money Market Fund, to the extent any Fund had undistributed investment company taxable income and net capital gains at December 31, 2013, such undistributed investment company taxable income and net capital gains were deemed distributed as consent dividends in place of regular distributions. Accordingly, no provision has been made for federal, state, or local income and excise taxes.

On December 22, 2010, The Regulated Investment Company Modernization Act of 2010 (the “Act”) was signed into law. The Act amended several tax rules impacting the Funds. Some highlights of the enacted provisions are as follows:

The Act allows for capital losses occurring in the taxable years beginning after December 22, 2010 (“post-enactment losses”) to be carried forward indefinitely. However, the Act requires any future gains to be first offset by post-enactment losses before using capital losses incurred in the taxable years beginning prior to the effective date of the Act (“pre-enactment losses”). As a result of this ordering rule, pre-enactment loss carryforwards have an increased likelihood to expire unused. Furthermore, post-enactment losses will retain their character as either long-term capital losses or short-term capital losses rather than being considered all short-term capital losses as under previous law.

The Act provides that a RIC may elect for any taxable year to treat any portion of any qualified late-year loss for such taxable year as arising on the first day of the following taxable year. The term “qualified late-year loss” means any post-October capital loss and any late-year ordinary loss.

The Act also contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests.

Reclassification of Capital Accounts:

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined under U.S. GAAP. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in capital or accumulated net realized gain or net investment income, as appropriate, in the period that the differences arise. Accordingly, the following permanent differences as of December 31, 2013, primarily attributable to consent dividends, reclass of capital gains tax income recognized from pass-through entities, the disallowance of net operating losses, the tax treatment of Passive Foreign Investment Companies, the redesignation of

206

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2014 (Unaudited)

dividend distributions, the reclassification of net foreign currency exchange gains or losses and the reclassification of paydown losses were reclassed between the following accounts:

	Increase (Decrease) Undistributed Net Investment Income			Increase (Decrease) Accumulated Net Realized Gains			Increase (Decrease) Paid-in Capital
Limited Maturity Bond Fund	$	(1,182,668	)	$	(167,105	)	$	1,349,773
Quality Bond Fund		(10,455,707	)		(165,216	)		10,620,923
High Yield Bond Fund		(11,180,602	)		669,209			10,511,393
Flexibly Managed Fund		(25,493,071	)		(178,555,844	)		204,048,915
Balanced Fund		149,409			(2,389,021	)		2,239,612
Large Growth Stock Fund		492,834			(21,791,866	)		21,299,032
Large Cap Growth Fund		(167,716	)		(5,026,572	)		5,194,288
Large Core Growth		90,003			—			(90,003	)
Large Cap Value Fund		(2,234,143	)		(9,123,256	)		11,357,499
Large Core Value Fund		(2,238,832	)		—			2,238,832
Index 500 Fund		(6,264,539	)		—			6,264,539
Mid Cap Growth Fund		549,006			(15,287,152	)		14,738,146
Mid Cap Value Fund		(1,768,008	)		(14,415,162	)		16,183,250
Mid Core Value Fund		(626,254	)		(16,697,134	)		17,323,388
SMID Cap Growth Fund		321,698			(6,074,212	)		5,752,514
SMID Cap Value Fund		(225,900	)		(5,727,125	)		5,953,025
Small Cap Growth Fund		410,247			(8,771,979	)		8,361,732
Small Cap Value Fund		(1,106,169	)		(32,370,494	)		33,476,663
Small Cap Index Fund		(402,852	)		(2,754,237	)		3,157,089
Developed International Index Fund		(2,700,185	)		3,440			2,696,745
International Equity Fund		(2,108,675	)		113,607			1,995,068
Emerging Markets Equity Fund		(580,849	)		144,143			436,706
Real Estate Securities Fund		(1,503,361	)		(5,630,345	)		7,133,706
Aggressive Allocation Fund		162,159			(764,065	)		601,906
Moderately Aggressive Allocation Fund		642,003			(3,309,298	)		2,667,295
Moderate Allocation Fund		1,014,580			(6,855,634	)		5,841,054
Moderately Conservative Allocation Fund		340,982			(2,777,840	)		2,436,858
Conservative Allocation Fund		232,466			(1,829,472	)		1,597,006

These reclassifications had no effect on net assets or net asset value per share.

Tax character of distributions:

The tax character of dividends and distributions declared and paid or deemed distributed during the years ended December 31, 2013 and 2012 were as follows:

	Ordinary Income and Short-Term Capital  Gains				Long-Term Capital Gains				Total
	2013		2012		2013		2012		2013		2012
Money Market Fund	$	13,151	$	14,219	$	—	$	—	$	13,151	$	14,219
Limited Maturity Bond Fund		1,232,810		1,713,752		116,963		—		1,349,773		1,713,752
Quality Bond Fund		10,620,923		11,799,258		—		6,431,826		10,620,923		18,231,084
High Yield Bond Fund		10,511,393		10,398,456		—		—		10,511,393		10,398,456
Flexibly Managed Fund		84,915,132		75,169,181		119,131,671		71,588,542		204,046,803		146,757,723
Balanced Fund		1,199,143		1,229,018		2,389,021		—		3,588,164		1,229,018
Large Growth Stock Fund		—		61,040		21,798,396		—		21,798,396		61,040

207

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2014 (Unaudited)

	Ordinary Income and Short-Term Capital  Gains				Long-Term Capital Gains				Total
	2013		2012		2013		2012		2013		2012
Large Cap Growth Fund	$	1,866,076	$	20,386	$	3,328,212	$	—	$	5,194,288	$	20,386
Large Core Growth Fund		—		181,137		—		—		—		181,137
Large Cap Value Fund		2,234,143		2,226,798		9,123,356		—		11,357,499		2,226,798
Large Core Value Fund		2,238,832		2,524,594		—		—		2,238,832		2,524,594
Index 500 Fund		6,264,539		5,657,305		—		—		6,264,539		5,657,305
Mid Cap Growth Fund		3,914,693		—		10,823,453		4,072,542		14,738,146		4,072,542
Mid Cap Value Fund		3,432,768		6,866,376		12,750,505		833,723		16,183,273		7,700,099
Mid Core Value Fund		8,755,746		426,502		8,567,642		1,629		17,323,388		428,131
SMID Cap Growth Fund		2,323,609		—		3,428,905		187,389		5,752,514		187,389
SMID Cap Value Fund		1,352,569		1,335,452		4,600,456		1,240,789		5,953,025		2,576,241
Small Cap Growth Fund		6,994,112		—		1,367,620		—		8,361,732		—
Small Cap Value Fund		9,599,808		2,296,543		23,876,854		6,811,820		33,476,662		9,108,363
Small Cap Index Fund		990,558		743,524		2,166,531		1,249,614		3,157,089		1,993,138
Developed International Index Fund		2,696,745		2,131,353		—		—		2,696,745		2,131,353
International Equity Fund		1,995,068		6,184,831		—		—		1,995,068		6,184,831
Emerging Markets Equity Fund		436,706		463,009		—		—		436,706		463,009
Real Estate Securities Fund		2,872,227		4,388,925		4,261,478		4,191,785		7,133,705		8,580,710
Aggressive Allocation Fund		1,518,146		753,119		2,173,443		520,308		3,691,589		1,273,427
Moderately Aggressive Allocation Fund		6,245,534		3,387,195		7,996,578		2,294,973		14,242,112		5,682,168
Moderate Allocation Fund		8,991,875		6,792,268		11,787,364		3,475,273		20,779,239		10,267,541
Moderately Conservative Allocation Fund		2,387,676		2,705,745		4,025,299		1,222,922		6,412,975		3,928,667
Conservative Allocation Fund		1,507,391		1,785,772		1,927,247		864,602		3,434,638		2,650,374

Short-term gain distributions to shareholders are treated as ordinary income for tax purposes.

Capital loss carryforwards:

At December 31, 2013, the following Funds had capital loss carryforwards (pre-enactment losses) available to offset future realized capital gains through the indicated expiration dates:

	Expires on December 31,
	2014		2015		2016		2017		2018		Total
High Yield Bond Fund		—		—			$	1,637,923		—	$	1,637,923
Large Core Growth Fund		—		—		—		4,474,445		—		4,474,455
Large Core Value Fund		—		—				6,328,176		—		6,638,176
Index 500 Fund	$	1,058,191	$	187,860	$	4,110,871		2,801,580	$	2,767,741		10,926,243
International Equity Fund		—		—		—		9,403,354		6,672,017		16,075,371
Emerging Markets Equity Fund		—		—		—		7,807,157		—		7,807,157

At December 31, 2012, the following Funds had capital loss carryforwards (post-enactment losses) available to offset future realized capital gains:

	Short-Term Capital Loss		Long-Term Capital Loss
Quality Bond Fund	$	59,064		—
Developed International Index Fund		—	$	1,809,793
Emerging Markets Equity Fund		268,515		—

208

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2014 (Unaudited)

During the year ended December 31, 2013, the following Funds utilized capital loss carryforwards to offset realized capital gains for federal income tax purposes in the following approximate amounts:

High Yield Bond Fund	$	4,863,503
Balanced Fund		228,030
Large Growth Stock Fund		12,851,437
Large Cap Growth Fund		125,931
Large Core Growth Fund		17,499,498
Large Cap Value Fund		21,369,689
Large Core Value Fund		24,744,699
Index 500 Fund		4,579,638
Small Cap Growth Fund		557,059
International Equity Fund		24,750,508

Qualified Late-Year Losses:

The following Funds elected to treat the qualified late-year losses as having occurred on January 1, 2014:

	Late-Year Ordinary Losses		Late-Year Capital Losses
High Yield Bond Fund	$	268,745		—
Emerging Markets Equity Fund		—	$	40,329
Developed International Index Fund		38,371		13,326
International Equity Fund		1,081,252		3,580,485

Tax cost of securities:

At June 30, 2014, the total cost of securities and net realized gains or losses on securities sold for federal income tax purposes were different from amounts reported for financial reporting purposes. The federal tax cost, aggregate gross unrealized appreciation and depreciation of securities held by each Fund at June 30, 2014 were as follows:

	Federal Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Money Market Fund	$	146,345,253		—		—			—
Limited Maturity Bond Fund		242,592,437	$	850,421	$	(237,050	)	$	613,371
Quality Bond Fund		513,534,299		11,970,948		(1,221,268	)		10,749,680
High Yield Bond Fund		186,290,950		10,625,019		(671,441	)		9,953,578
Flexibly Managed Fund		2,389,366,028		530,982,185		(7,708,076	)		523,274,109
Balanced Fund		49,140,362		30,169,740		—			30,169,740
Large Growth Stock Fund		178,536,079		92,387,633		(481,235	)		91,906,398
Large Cap Growth Fund		47,620,386		8,435,354		(124,445	)		8,310,909
Large Core Growth Fund		89,395,206		36,869,133		(801,692	)		36,067,441
Large Cap Value Fund		188,345,118		41,273,992		(2,169,451	)		39,104,541
Large Core Value Fund		144,792,413		51,007,177		(704,637	)		50,302,540
Index 500 Fund		266,278,386		174,612,611		(16,953,829	)		157,658,782
Mid Cap Growth Fund		116,963,819		8,509,137		(1,915,274	)		6,593,863
Mid Cap Value Fund		147,226,895		4,0197,966		(2,329,365	)		37,868,601
Mid Core Value Fund		68,354,646		9,520,408		(578,656	)		8,941,752
SMID Cap Growth Fund		46,942,538		13,976,282		(877,562	)		13,098,720
SMID Cap Value Fund		53,481,538		17,594,182		(539,806	)		17,054,376
Small Cap Growth Fund		72,966,802		19,376,773		(1,002,797	)		18,373,976
Small Cap Value Fund		185,892,720		62,925,032		(2,597,828	)		60,327,204

209

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2014 (Unaudited)

	Federal Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Small Cap Index Fund	$	50,077,007	$	21,666,500	$	(2,204,252	)	$	19,462,248
Developed International Index Fund		82,665,095		30,762,023		(3,067,438	)		27,694,585
International Equity Fund		303,829,825		96,824,050		(3,839,393	)		92,984,657
Emerging Markets Equity Fund		141,314,661		37,427,532		(7,159,154	)		30,268,378
Real Estate Securities Fund		109,548,708		18,102,669		(254,523	)		17,848,146
Aggressive Allocation Fund		40,840,412		22,290,551		(433,760	)		21,856,791
Moderately Aggressive Allocation Fund		164,048,770		86,454,533		(2,168,975	)		84,285,558
Moderate Allocation Fund		259,913,786		108,000,232		—			108,000,232
Moderately Conservative Allocation Fund		84,453,775		28,320,611		(752,609	)		27,568,002
Conservative Allocation Fund		55,905,814		12,748,209		—			12,748,209

The differences between book basis and tax basis appreciation are primarily due to wash sales, Passive Foreign Investment Companies, Partnership Investments, Trust Preferred Securities, real estate investment trust adjustments, and the treatment of certain corporate actions.

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years and has concluded that as of June 30, 2014, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state department of revenue.

7 — DERIVATIVE FINANCIAL INSTRUMENTS

The Funds may trade derivative financial instruments in the normal course of investing activities to assist in managing exposure to market risks such as interest rates and foreign currency exchange rates. These financial instruments include written options, forward foreign currency exchange contracts and futures contracts.

The notional or contractual amounts of these instruments represent the investment the Funds have in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

Futures Contracts — A futures contract is a standardized contract between two parties to buy or sell a specified asset at a specified future date at a price agreed today (the future price). The party agreeing to buy the underlying asset in the future assumes a long position. The price is determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders on the exchange at the time of the purchase or sale of the contract.

To the extent permitted by the investment objective, restrictions and policies set forth in the Funds’ Prospectus and Statement of Additional Information, the Funds may participate in various derivative-based transactions. The Index 500, Developed International Index and Small Cap Index Funds employ futures to maintain market exposure and otherwise assist in attempting to replicate the performance of their respective indices. These derivatives offer unique characteristics and risks that assist the Funds in meeting their investment objectives. The Funds typically use derivatives in two ways: cash equitization and return enhancement. Cash equitization is a technique that may be used by the Funds through the use of futures contracts to earn “market-like” returns with the Funds’ excess and liquidity reserve cash balances and receivables. Return enhancement can be accomplished through the use of derivatives in the Funds. By purchasing these instruments, the Funds may more effectively achieve the desired fund characteristics that assist in meeting the Funds’ investment objectives.

Futures contracts involve a number of risks, such as possible default by the counterparty to the transaction, credit risk with respect to initial and variation margins held in a brokerage account, market movement and the potential of greater loss than if these techniques had not been used by a Fund. These investments can also increase the Fund’s share price and expose the Fund to significant additional costs.

210

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2014 (Unaudited)

The Quality Bond, Index 500, Developed International Index and Small Cap Index Funds have entered into futures contracts during the six months ended June 30, 2014. Open futures contracts held by the Index 500, Developed International Index and Small Cap Index Funds at June 30, 2014 were as follows:

Fund	Type		Expiration Date		Number Of Contracts		Units per Contract		Closing Price		Unrealized Appreciation (Depreciation)
Quality Bond	Sell/Short	US Treasury Note		9/15/2014		80		1,000	$	125	$	(4,375	)
Quality Bond	Sell/Short	US Treasury Bond		9/15/2014		125		1,000		137		(32,031	)
Index 500	Buy/Long	E-Mini S&P 500 Index		9/15/2014		77		50		1,952		77,980
Small Cap Index	Buy/Long	Russell 2000 Mini Index		9/15/2014		16		100		1,190		37,307
Developed International Index	Buy/Long	E-Mini MSCI Eafe Index		9/15/2014		8		50		1,969		2,680

The total market value of futures contracts held in the Index 500, Developed International Index and Small Cap Index Funds as of June 30, 2014 are classified as Level 1.

Options — An option establishes a contract between two parties concerning the buying or selling of an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in some specific transaction on the asset, while the seller incurs the obligation to fulfill the transaction if so requested by the buyer. The price of an option derives from the difference between the reference price and the value of the underlying asset plus a premium based on the time remaining until the expiration of the option. The Funds may buy and sell options, or write options.

Options are valued daily based upon the last sale price on the principal exchange on which the option is traded. The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operation.

The Flexibly Managed and High Yield Bond Funds have purchased options to decrease exposure to equity risk. The risk associated with purchased options is limited to premium paid. The Funds also received premiums for options written. The risk in writing a call option is that the Funds give up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Funds may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Funds pay a premium whether or not the option is exercised. The Funds also have the additional risk that there may be an illiquid market where the Funds are unable to close the contract.

Transactions in options written during the six months ended June 30, 2014 for the Flexibly Managed Fund were as follows:

Flexibly Managed Fund	Number of Contracts/ Notional Amount			Premium Received
Options outstanding at December 31, 2013		29,258		$	7,233,242
Options written		26,674			6,908,880
Options repurchased		(13,001	)		(3,509,807	)
Options expired		(2,262	)		(2,63,954	)
Options exercised		(9,398	)		(1,896,830	)
Options outstanding at June 30, 2014		31,271		$	8,471,531

211

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2014 (Unaudited)

The total market value of written options held in the Flexibly Managed Fund as of June 30, 2014 can be found in the summary of inputs on the Schedule of Investments.

Forward Foreign Currency Contracts — A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, which may be any number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are traded directly between currency traders and their customers. The contract is marked-to-market daily and the change in market value is recorded by each Fund as an unrealized gain or loss. When the contract is closed or offset with the same counterparty, the Fund records a realized gain or loss equal to the change in the value of the contract when it was opened and the value at the time it was closed or offset.

The High Yield Bond, Mid Core Value and Emerging Markets Equity Funds entered into forward currency contracts in conjunction with the planned purchase or sale of foreign denominated securities in order to hedge the U.S. dollar cost or proceeds. The Funds hedge currencies in times of base currency weakness in order to reduce the volatility of returns for the local securities which the Fund owns.

Foreign forward currency contracts involve a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent the portfolio manager’s judgment as to certain market movements is incorrect, the risk of losses that are greater than if the investment technique had not been used. For example, there may be an imperfect correlation between the Fund’s portfolio holdings of securities denominated in a particular currency and the forward contracts entered into by the Fund. An imperfect correlation of this type may prevent the Fund from achieving the intended hedge or expose the Fund to the risk of currency exchange loss. These investment techniques also tend to limit any potential gain that might result from an increase in the value of the hedged position. These investments can also increase the volatility of the Fund’s share price and expose the Fund to significant additional costs.

Open forward foreign currency contracts held by the High Yield Bond Fund at June 30, 2014 were as follows:

	Currency	Counterparty	Settlement Date		Foreign Currency Contract			Forward Rate		U.S. Contract Amount			U.S. Contract Value			Unrealized Foreign Exchange Gain/(Loss)
Buy	Euro	Bank of New York Mellon		09/12/2014	$	434,625			0.73009	$	590,950		$	595,298		$	4,348
Buy	Euro	Bank of New York Mellon		09/12/2014		66,853			0.73009		90,739			(91,567	)		828
Buy	Euro	Bank of New York Mellon		09/12/2014		154,134			0.73009		209,798			211,114			1,317
Sell	Euro	Bank of New York Mellon		09/12/2014		(10,088,917	)		0.73009		(13,660,999	)		(13,818,621	)		(157,621	)
Sell	Euro	Bank of New York Mellon		09/12/2014		(138,278	)		0.73009		(187,339	)		(189,397	)		(2,057	)
Sell	Pounds Sterling	Barclays Capital		07/10/2014		(1,964,750	)		0.58437		(3,286,935	)		(3,362,179	)		(75,245	)
Sell	Pounds Sterling	Deutsche Bank		07/10/2014		(162,844	)		0.58437		(274,243	)		(278,666	)		(4,423	)
Sell	Pounds Sterling	Bank of New York Mellon		07/10/2014		(262,706	)		0.58437		(441,645	)		(449,555	)		(7,910	)
Sell	Pounds Sterling	Bank of New York Mellon		07/10/2014		(224,687	)		0.58437		(375,700	)		(384,497	)		(8,797	)
Sell	Swiss Francs	Bank of New York Mellon		08/12/2014		(21,000	)		0.88647		(23,431	)		(23,689	)		(259	)
Sell	Swiss Francs	Royal Bank of Canada		08/12/2014		(891,989	)		0.88647		(1,015,558	)		(1,006,220	)		9,338
	Total															$	(240,481	)

Open forward foreign currency contracts held by the Mid Core Value Fund at June 30, 2014 were as follows:

	Currency	Counterparty	Settlement Date		Foreign Currency Contract			Forward Rate		U.S. Contract Amount			U.S. Contract Value			Unrealized Foreign Exchange Gain/(Loss)
Sell	Canadian Dollar	JPMorgan Chase		07/31/2014	$	(2,329,029	)		1.06795	$	(2,166,841	)	$	(2,180,841	)	$	(14,000	)
Sell	Pounds Sterling	Credit Suisse		07/31/2014		(312,461	)		0.58447		(530,125	)		(534,605	)		(4,480	)
Sell	Euro	USB Securities		07/31/2014		(848,748	)		0.73021		(1,153,813	)		(1,162,330	)		(8,517	)
	Total															$	(26,997	)

212

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2014 (Unaudited)

Open forward foreign currency contracts held by the Emerging Markets Equity Fund at June 30, 2014 were as follows:

	Currency	Counterparty	Settlement Date		Foreign Currency Contract			Forward Rate		U.S. Contract Amount			U.S. Contract Value			Unrealized Foreign Exchange Gain/(Loss)
Sell	Japanese Yen	State Street		07/24/2014	$	(74,674,746	)		101.28508	$	(732,975	)	$	(737,273	)	$	(4,298	)
	Total															$	(4,298	)

The total market value of forward foreign currency contracts held in the High Yield Bond, Mid Core Value and Emerging Markets Equity Funds as of June 30, 2014 are classified as Level 2.

The following is a summary of the location of derivatives on the Funds’ Statements of Assets and Liabilities as of June 30, 2014:

	Location on the Statements of Assets and Liabilities
Derivative Type	Asset Derivatives	Liability Derivatives
Equity contracts	Investments at value* Net unrealized appreciation in value of investments, futures contracts and foreign currency related items**	Call options written, at value Net unrealized appreciation in value of investments, futures contracts and foreign currency related items**
Foreign currency contracts	Net unrealized appreciation of forward foreign currency contracts	Net unrealized depreciation of forward foreign currency contracts

* Includes purchased options.

** Includes cumulative appreciation/depreciation of futures contracts as reported in the footnotes. Only current day’s variation margin is reported with the Statements of Assets and Liabilities.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities. The following is a summary of the gross amount of each Fund’s derivative instrument holdings categorized by primary risk exposure as of June 30, 2014:

	Asset Derivative Value				Liability Derivative Value
	Equity contracts		Foreign currency contracts		Equity contracts		Foreign exchange contracts		Interest rate contracts
Quality Bond Fund		—		—		—		—		$36,406
High Yield Bond Fund		—		$15,831		—		$256,312		—
Flexibly Managed Fund		—		—		$8,444,768		—		—
Index 500 Fund		$77,980		—		—		—		—
Small Cap Index Fund		37,307		—		—		—		—
Developed International Index Fund		2,680		—		—		—		—
Mid Core Value Fund		—		—		—		26,997		—
Emerging Markets Equity Fund		—		—		—		4,298		—

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may participate in International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement” or “ISDA”) with derivative contract counterparties or enter into similar agreements covering foreign exchange contracts (“Fx Letters”). An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs over-the-counter (“OTC”) traded derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting) including the bankruptcy or insolvency of the counterparty. Also, bankruptcy or insolvency laws of a

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particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. An Fx Letter is also a bilateral agreement between a Fund and a counterparty and is limited to cover only foreign exchange contracts. Fx Letters typically contain netting provisions covering events of default and do not require collateral to be posted. ISDAs and Fx Letters containing netting provisions may be referred to as Master Netting Agreements (“MNA”).

Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker for OTC traded derivatives or by the clearing house for exchange traded derivatives. Brokers can ask for margining in excess of the minimum in certain circumstances. Collateral terms are contract specific for OTC derivatives (foreign currency exchange contracts and options). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by a Fund and the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold before a transfer has to be made. To the extent amounts due to a Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

The following table presents derivative assets and liabilities net of amounts available for offset under a MNA and, as applicable, the related collateral and potential loss exposure to each Fund as of June 30, 2014:

		Gross Amounts Presented on Statements of Assets and Liabilities
Fund and Counterparty	Form of Master Netting Agreement	Value of Asset		Value of Liability			Net Amount Due (to)/from Counterparty			Collateral Pledged (Received) by fund		Loss Exposure, After Collateral (not less than $0)
High Yield Bond Fund
Barclays Capital	Fx Letter		—	$	(75,245	)	$	(75,245	)		—		—
Bank of New York Mellon	Fx Letter	$	6,493		(176,644	)		(170,151	)		—		—
Deutsche Bank	Fx Letter		—		(4,423	)		(4,423	)		—		—
Royal Bank of Canada	Fx Letter		9,338		—			9,338			—	$	9,338
Total			15,831		(256,312	)		(240,481	)		—		9,338
Flexibly Managed Fund
Bank of America Merrill Lynch	ISDA		—		(3,371,787	)		(3,371,787	)		—		—
Citigroup Global Markets	ISDA		—		(1,829,432	)		(1,829,432	)		—		—
Morgan Stanley & Co.	ISDA		—		(1,761,379	)		(1,761,379	)		—		—
Merrill Lynch Capital Markets	ISDA		—		(890,780	)		(890,780	)
JPMorgan Chase.	ISDA		—		(202,239	)		(202,239	)		—		—
Exchange Traded			—		(388,151	)		(388,151	)		—		—
Total			—		(8,444,768	)		(8,444,768	)		—		—
Mid Cap Growth Fund
Morgan Stanley & Co.	ISDA		82,561		—			82,561			—		82,561
Mid Core Value Fund
JPMorgan Chase	ISDA		—		(14,000	)		(14,000	)		—		—
UBS Securities	ISDA		—		(8,517	)		(8,517	)		—		—
Credit Suisse First Boston	ISDA		—		(4,480	)		(4,480	)		—		—
Total			—		(26,997	)		(26,997	)		—		—
Emerging Markets Equity Fund
State Street	Fx Letter		—		(4,298	)		(4,298	)		—		—

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Notes to Financial Statements — June 30, 2014 (Unaudited)

The following is a summary of the location of derivatives on the Funds’ Statements of Operations as of June 30, 2014:

Derivative Type	Location of Gain (Loss) on Derivatives Recognized in Income
Equity contracts	Net realized gain (loss) on futures contracts
	Net realized gain (loss) on options
	Change in net unrealized appreciation (depreciation) of investments and foreign currency
	Change in net unrealized appreciation (depreciation) of futures contracts
	Change in net unrealized appreciation (depreciation) of written options
Foreign currency contracts	Net realized foreign currency exchange gain (loss)
	Change in net unrealized appreciation (depreciation) of investments and foreign currency

Portfolio	Realized Gain (Loss) on Derivatives Recognized in Income
	Equity contracts	Foreign currency contracts	Interest rate contracts
Quality Bond Fund	—	—	$(128,172)
High Yield Bond Fund	—	$46,953	—
Flexibly Managed Fund*	$(820,369)	—	—
Index 500 Fund	361,705	—	—
Small Cap Index Fund	54,278	—	—
Developed International Index Fund	202,353	—	—
Mid Core Value Fund	—	(11,880)	—
Emerging Markets Equity Fund	—	(4,322)	—

Portfolio	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
	Equity contracts	Foreign currency contracts	Interest rate contracts
Quality Bond Fund	—	—	$(36,406)
High Yield Bond Fund	—	$(137,050)	—
Flexibly Managed Fund	$7,535,391	—	—
Index 500 Fund	69,801	—	—
Mid Core Value	—	(8,589)	—
Small Cap Index Fund	13,727	—	—
Developed International Index Fund	(96,931)	—	—
Emerging Markets Equity Fund	—	(21,142)	—

* Includes purchased options.

The table below summarizes the average balance of derivative holdings by Fund during the six months ended June 30, 2014. The average balance of derivatives held is indicative of the trading volume of each Fund.

	Average Derivative Volume
Portfolio	Forward foreign currency contracts (Average Cost)			Futures contracts (Average Notional Value)		Purchased Options (Average Notional Cost)		Written Options (Premiums Received)
Quality Bond Fund		—		$	7,074,443		—		—
High Yield Bond Fund	$	(18,863,323	)		—		—		—
Flexibly Managed Fund		—			—		—	$	(8,172,432	)

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	Average Derivative Volume
Portfolio	Forward foreign currency contracts (Average Cost)			Futures contracts (Average Notional Value)		Purchased Options (Average Notional Cost)		Written Options (Premiums Received)
Index 500 Fund		—		$	5,360,133		—		—
Mid Cap Growth Fund		—			—	$	21,319		—
Mid Core Value Fund	$	(3,153,214	)		—		—		—
Small Cap Index Fund		—			1,201,759		—		—
Developed International Index Fund		—			3,049,667		—		—
Emerging Markets Equity Fund		(586,751	)		—		—		—

8 — CREDIT AND MARKET RISK

The Funds may invest a portion of their assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair the Funds’ ability to dispose of them in a timely manner and at a fair price when it is necessary or preferable to do so.

The high yield securities in which the High Yield Bond Fund may invest are predominantly speculative as to the issuer’s continuing ability to meet principal and interest payments. The value of the lower quality securities in which the High Yield Bond Fund may invest will be affected by the credit worthiness of individual issuers, general economic and specific industry conditions, and will fluctuate inversely with changes in interest rates. In addition, the secondary trading market for lower quality bonds may be less active and less liquid than the trading market for higher quality bonds.

The High Yield Bond, Flexibly Managed, Large Growth Stock, Large Cap Growth, Mid Cap Growth, Mid Core Value, Small Cap Growth Developed International Index, International Equity and the Emerging Markets Equity Funds invest in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States, as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries.

9 — CONTRACTUAL OBLIGATIONS

In the general course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds and/or its affiliates that have not yet occurred. However, based on experience, management of the Funds expects the risk of loss to be remote.

10 — PENDING LEGAL MATTERS

Penn Series was named as a defendant and a putative member of the proposed defendant class of shareholders in the case entitled Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons (In re Tribune Co.), No. 12-cv-02652 (WHP) (S.D.N.Y.), as a result of the Penn Series Index 500 Fund’s ownership of shares in the Tribune Company (“Tribune”) in 2007. On May 20, 2014, the plaintiff in this case voluntarily dismissed the action against Penn Series, with prejudice, pursuant to a settlement agreement. Neither the litigation nor the settlement had a material adverse effect on the NAV of the Penn Series Index 500 Fund.

11 — SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

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Disclosure of Portfolio Holdings

The SEC has adopted a requirement that all Funds file a complete schedule of investments with the SEC for their first and third fiscal quarters on Form N-Q. For Penn Series, this would be for the fiscal quarters ending March 31 and September 30. The Form N-Q filing is made within 60 days after the end of each of those quarters. Penn Series filed its most recent Form N-Q with the SEC on May 20, 2014. It is available on the SEC’s website at http://www.sec.gov. or it may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (call 1-202-551-8090 for information on the operation of the Public Reference Room).

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that a Fund uses to determine how to vote proxies relating to securities held in the Fund’s portfolios is available, without charge and upon request, on the Fund’s website at http://www.pennmutual.com or on the SEC’s website at http://www.sec.gov. Information regarding how the Fund voted proxies for the most recent twelve-month period ended June 30, 2014 is available on the Fund’s website at http://www.pennmutual.com and on the SEC’s website at http://www.sec.gov.

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Shareholder Voting Results (Unaudited)

Penn Series held a Special Meeting of Shareholders at the offices of Penn Mutual on Thursday, February 13, 2014.

At the meeting the shareholders were asked to:

1. Elect a Board of Directors for Penn Series. The Proposal was approved. The following votes were cast:

NAME OF DIRECTOR	VOTES “FOR”		VOTES “WITHHELD”
Eugene Bay		498,654,116.256		19,895,701.307
Joanne B. Mack		501,081,893.313		17,467,924.251
Archie Craig MacKinlay		500,182,264.277		18,367,553.287
Rebecca C. Matthias		499,544,306.292		19,005,511.271
Eileen C. McDonnell		499,261,350.896		19,288,466.667
David B. Pudlin		500,027,827.963		18,521,989.601

2. Approve amendments to the investment advisory agreements between ICMI and the Company to modify the advisory fee rate schedule of certain funds (Proposals 2A through 2O). Each Proposal was approved. The following votes were cast:

NAME OF FUND	VOTES “FOR”		VOTES “AGAINST”		ABSTENTIONS
Money Market Fund		102,497,994.736		21,857,717.087		3,571,336.987
Limited Maturity Bond Fund		17,010,340.113		1,545,211.949		583,528.213
Quality Bond Fund		38,009,873.588		4,364,368.155		1,030,611.628
High Yield Bond Fund		15,262,516.923		1,606,389.572		608,259.464
Flexibly Managed Fund		61,804,686.690		9,636,622.406		3,614,543.900
Large Growth Stock Fund		9,198,764.617		1,093,133.195		343,054.867
Large Cap Value Fund		8,874,321.360		1,471,583.587		265,261.126
Large Core Value Fund		12,349,879.475		1,261,846.314		431,892.717
Index 500 Fund		25,364,264.444		2,635,371.319		808,370.426
International Equity Fund		14,067,504.655		1,736,363.692		591,289.478
Aggressive Allocation Fund		3,061,867.933		795,804.781		96,242.759
Moderately Aggressive Allocation Fund		12,566,588.447		1,795,407.649		1,193,181.536
Moderate Allocation Fund		20,436,590.323		3,987,414.271		1,305,811.069
Moderately Conservative Allocation Fund		7,501,004.286		601,913.884		501,366.170
Conservative Allocation Fund		4,429,120.591		795,135.333		354,966.828

3. Reclassify the Quality Bond Fund’s fundamental policy on warrants as a “non-fundamental” policy. The Proposal was approved. The following votes were cast:

NAME OF FUND	VOTES “FOR”		VOTES “AGAINST”		ABSTENTIONS
Quality Bond Fund		39,294,302.158		2,225,271.104		1,885,280.110

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June 30, 2014

Board Approval of Investment Advisory and Sub-Advisory Agreements

The Penn Series Funds, Inc. (the “Company”) and Independence Capital Management, Inc. (“ICMI”) have entered into an investment advisory agreement (the “Advisory Agreement”). Pursuant to the Advisory Agreement, ICMI (i) provides day-to-day investment management services to the Money Market, Limited Maturity Bond, Quality Bond, Balanced, Aggressive Allocation, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation, and Conservative Allocation Funds (collectively, the “Directly Managed Funds”) and (ii) is responsible for the selection and oversight of various investment sub-advisers who perform day-to-day investment management services for the High Yield Bond, Flexibly Managed, Large Growth Stock, Large Cap Value, Large Cap Growth, Index 500, Mid Cap Growth, Mid Cap Value, Mid Core Value, Small Cap Value, Small Cap Growth, International Equity, Real Estate Securities, Large Core Growth, Large Core Value, SMID Cap Growth, SMID Cap Value, Emerging Markets Equity, Small Cap Index and Developed International Index Funds (collectively, the “Sub-Advised Funds” and, together with the Directly Managed Funds, the “Penn Series Funds”).

ICMI acts as a “manager of managers” for the Sub-Advised Funds. In this capacity, ICMI has entered into and the Company’s Board of Directors (the “Board”) has approved separate sub-advisory agreements (the “Sub-Advisory Agreements” and, together with the Advisory Agreement, the “Investment Advisory Agreements”) with each of the sub-advisers identified below (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”). The Sub-Advisers provide their services to the Sub-Advised Funds under the supervision of ICMI and the Board. Each Sub-Adviser is selected based primarily upon the research and recommendations of ICMI, which evaluates quantitatively and qualitatively each Sub-Adviser’s investment expertise and investment results in managing assets for specific asset classes, investment styles and strategies, as well as the Sub-Adviser’s regulatory compliance infrastructure and culture. ICMI oversees each Sub-Adviser to ensure compliance with the Sub-Advised Fund’s investment policies and guidelines, and monitors each Sub-Adviser’s adherence to its investment style and investment performance.

The Investment Company Act of 1940, as amended (the “1940 Act”), requires that the initial approval of, as well as the continuation of, each Penn Series Fund’s Investment Advisory Agreement(s) be specifically approved by: (i) the vote of the Board or by a vote of the shareholders of the Fund; and (ii) the vote of a majority of the Company’s Directors who are not “interested persons,” as defined in the 1940 Act (collectively, the “Independent Directors”), cast in person at a meeting called for the purpose of voting on such approval. In connection with its consideration of such approvals, the Board must request and evaluate, and ICMI and the Sub-Advisers are required to furnish, such information as may be reasonably necessary to evaluate the terms of the Investment Advisory Agreements. In addition, the Securities and Exchange Commission takes the position that, as part of their fiduciary duties with respect to a mutual fund’s fees, mutual fund boards are required to evaluate the material factors applicable to a decision to approve an Investment Advisory Agreement.

Board Approval of New Investment Sub-Advisory Agreement

At a meeting of the Board held on February 19, 2014, ICMI recommended, and the Board, including a majority of the Independent Directors of the Company, approved, the replacement of Turner Investments, L.P. (“Turner”), the then-existing sub-adviser to the Mid Cap Growth Fund (the “Fund”), with Ivy Investment Management Company (“Ivy”) effective May 1, 2014.

The recommendation to hire Ivy was made by ICMI in the ordinary course of its ongoing evaluation of the Fund’s investment strategy and performance, and after extensive research of numerous candidate firms and qualitative and quantitative analysis of each candidate’s organizational structure, investment process, style and long-term performance record.

Sub-Advisory Agreement. ICMI entered into an investment sub-advisory agreement with Ivy, dated May 1, 2014 (the “Ivy Sub-Advisory Agreement”). Pursuant to the terms of the Ivy Sub-Advisory Agreement, Ivy is responsible for making investment decisions for the assets of the Fund and continuously reviewing, supervising and administering the Fund’s investment program. Ivy is independent of ICMI and discharges its responsibilities subject to the supervision of ICMI and the Board, and in a manner consistent with the Fund’s investment objectives, policies and limitations. The Ivy Sub-Advisory Agreement replaced the sub-advisory agreement between ICMI and Turner, with respect to the Fund, dated May 1, 2000, as amended May 17, 2007 and January 31, 2008, and assigned and assumed on January 1, 2012. The termination of the sub-advisory agreement between ICMI and Turner was effective as of the opening of the New York Stock Exchange on May 1, 2014.

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The Ivy Sub-Advisory Agreement is substantially similar to the other Sub-Advisory Agreements in existence between ICMI and the Company’s other Sub-Advisers. Specifically, the duties to be performed, standard of care and termination provisions of the Ivy Sub-Advisory Agreement are similar to the other Sub-Advisory Agreements. The material differences between the Ivy Sub-Advisory Agreement and the other Sub-Advisory Agreements are the identity of the Sub-Adviser, the effective date, the termination date, and the compensation payable by ICMI to the Sub-Adviser. The Ivy Sub-Advisory Agreement will remain in effect for two years from its effective date (unless earlier terminated in accordance with the terms of the Ivy Sub-Advisory Agreement), and will be subject to annual approval thereafter by a majority of the Directors, including a majority of the Independent Directors.

Board Considerations. Prior to the approval of Ivy, the Board received written information and an oral presentation from ICMI and Ivy. ICMI also reviewed with the Board the bases for its recommendations, including the findings of its due diligence review of Ivy. The Board then met with representatives of ICMI and Ivy and considered information about Ivy’s portfolio managers, investment philosophies, strategies and processes, brokerage practices, and compliance processes, as well as other factors. As further outlined below, in approving Ivy, the Board carefully evaluated: (1) the nature, extent and quality of the services expected to be rendered to the Fund; (2) the performance record of Ivy; (3) the costs of the services expected to be rendered to the Fund; and (4) the existence of economies of scale that may be realized by ICMI and Ivy and whether any corresponding benefits would be passed along to the Fund’s shareholders. The Board discussed the written materials provided in advance of the meeting and Ivy’s oral presentations and any other information that the Board received at the meeting, and deliberated on approving the Ivy Sub-Advisory Agreement in light of this information. The Board used the foregoing information, as well as such other information as the Directors considered to be relevant in the exercise of their reasonable judgment, in their decision to approve Ivy as sub-adviser to the Fund.

Nature, Extent and Quality of Sub-Advisory Services. In considering the nature, extent and quality of the services to be provided by Ivy, the Board evaluated, among other things, Ivy’s business, personnel, experience, investment decision process, past performance, brokerage practices, including soft dollar practices, any conflicts of interest, compliance program and the resources of Ivy to be dedicated to the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services to be provided by Ivy to the Fund and the resources of Ivy to be dedicated to the Fund supported approval of the Ivy Sub-Advisory Agreement.

Performance Record. In considering the past performance record of Ivy, the Board evaluated the recent and long-term performance of the similar accounts managed by Ivy relative to its peer group and appropriate indices/benchmarks, in light of total return and economic and market trends and both market risk and shareholder risk expectations. The Board also considered Ivy’s ability to execute on its strategies, the consistency of its returns and volatility over various market cycles, and the strength of its reputation among insurance producers. Based on this evaluation, the Board concluded, within the context of its full deliberations, that Ivy’s performance supported approval of the Ivy Sub-Advisory Agreement.

Costs of Sub-Advisory Services. In considering the costs of the sub-advisory services to be provided by Ivy, the Board evaluated (a) the services to be provided by Ivy; (b) the sub-advisory fees to be paid to Ivy, including in particular the breakpoints in the graduated sub-advisory fee rate schedule; (c) the sub-advisory fees to be paid to Ivy in comparison to sub-advisory fees charged to other comparable mutual funds and other types of comparable accounts; and (d) the fact that Ivy will be compensated by ICMI and not by the Fund directly and that such compensation reflects an arms-length negotiation between Ivy and ICMI. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the sub-advisory fee charged under the Ivy Sub-Advisory Agreement is reasonable and supported approval of the Ivy Sub-Advisory Agreement.

Profitability. Because it was not yet possible to determine the profitability that Ivy might achieve with respect to the services Ivy will provide to the Fund, the Board did not reach any conclusions regarding the Sub-Adviser’s profitability, but did take into account the fact that Ivy will be compensated by ICMI and not by the Fund directly, and that such compensation reflects an arms-length negotiation between Ivy and ICMI. The Board also considered the impact of the sub-advisory arrangement on the profitability of ICMI.

Economies of Scale. The Board considered the existence of any economies of scale and whether any such economies of scale would be passed along to the Fund’s shareholders through breakpoints or other means, including any fee waivers by ICMI and its affiliates. The Board noted, in particular, that ICMI has contractually committed to waive fees and/or reimburse

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certain expenses of the Fund to maintain the Fund’s total expense ratio at 1.00%. Based on this evaluation, the Board concluded, within the context of its full deliberations, the Fund and its shareholders obtain a reasonable benefit from any economies of scale realized by ICMI and Ivy.

Based on the Board’s deliberations and its evaluation of the information described above, the Board, including all of the Independent Directors, unanimously approved the Ivy Sub-Advisory Agreement and concluded that the compensation under the Ivy Sub-Advisory Agreement is fair and reasonable in light of such services and such other matters as the Board considered to be relevant in the exercise of the Directors’ reasonable judgment. In the course of its deliberations, the Board did not identify any particular information or factor that was all-important or controlling.

Board Approval of the Continuance of Investment Advisory and Sub-Advisory Agreements

The Board called and held a meeting on May 15, 2014 to consider whether to renew the Advisory Agreement between the Company and ICMI with respect to each Penn Series Fund. In preparation for this meeting, the Board provided ICMI with a written request for information and received and reviewed, in advance of the May 15, 2014 meeting, extensive written materials in response to that request, including information as to the performance of each Penn Series Fund versus its benchmark and peer universe, the level of the investment advisory fees charged to the Penn Series Fund, comparisons of such fees with the investment advisory fees incurred by comparable funds, including, in particular, funds acting as underlying investments for insurance products, the costs to ICMI of providing such services, including a profitability analysis, ICMI’s compliance program, and various other matters. In addition, at the May 15, 2014 meeting, the Board considered whether to renew each Sub-Advisory Agreement between ICMI and each Sub-Adviser listed in the table below on behalf of its respective Sub-Advised Fund(s).

Sub-Adviser	Fund
AllianceBernstein L.P.	SMID Cap Value Fund
American Century Investment Management	Mid Core Value Fund
Cohen & Steers Capital Management, Inc.	Real Estate Securities Fund
Eaton Vance Management	Large Core Value Fund
Goldman Sachs Asset Management, L.P.	Small Cap Value Fund
Ivy Investment Management Company	Mid Cap Growth Fund
Janus Capital Management LLC	Small Cap Growth Fund
Loomis, Sayles & Company, L.P.	Large Cap Value Fund
Massachusetts Financial Services Company	Large Cap Growth Fund
Morgan Stanley Investment Management, Inc. Morgan Stanley Investment Management Company Morgan Stanley Investment Management Limited	Emerging Markets Equity Fund
Neuberger Berman Management LLC	Mid Cap Value Fund
SSgA Funds Management, Inc.	Index 500 Fund
SSgA Funds Management, Inc.	Small Cap Index Fund
SSgA Funds Management, Inc.	Developed International Index Fund
T. Rowe Price Associates, Inc.	Flexibly Managed Fund
T. Rowe Price Associates, Inc.	Large Growth Stock Fund
T. Rowe Price Associates, Inc.	High Yield Bond Fund
Vontobel Asset Management, Inc.	International Equity Fund
Wells Capital Management Inc.	Large Core Growth Fund
Wells Capital Management Inc.	SMID Cap Growth Fund

In response to the Board’s written request for information, each of the Sub-Advisers submitted, in advance of the May 15, 2014 meeting, extensive written materials for consideration by the Board and the Independent Directors. The information provided by ICMI and the Sub-Advisers in connection with the May 15, 2014 Board meeting was in addition to the detailed information about the Penn Series Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and the Funds’ performance and the services of ICMI and the Sub-Advisers. In connection with the meeting, the Board also received a memorandum from legal counsel regarding the responsibilities of the Board in

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connection with its consideration of whether to approve the Investment Advisory Agreements. In addition, the Independent Directors met in executive session outside the presence of Company management to discuss the information submitted to the Board in connection with the renewal of the Investment Advisory Agreements. The Independent Directors also met in executive session with senior representatives of ICMI to discuss the written materials provided by ICMI.

The written materials provided by ICMI and the Sub-Advisers addressed, among other matters, the following: (a) the quality of ICMI’s and the Sub-Advisers’ investment management and other services and, with respect to ICMI, its services as a “manager of managers” of the Sub-Advised Funds; (b) ICMI’s and the Sub-Advisers’ investment management personnel; (c) ICMI’s and the Sub-Advisers’ operations and financial condition; (d) ICMI’s and the Sub-Advisers’ brokerage practices (including best execution policies, evaluating execution quality, average commission rates on fund trades, soft dollar arrangements and affiliated and directed brokerage arrangements) and investment strategies; (e) the level of the advisory fees that ICMI and each Sub-Adviser charges a Fund, including breakpoints, compared with the fees each charges to comparable mutual funds and other types of accounts it manages, if any; (f) the level of ICMI’s and each Sub-Adviser’s cost of services provided and estimated profitability from its fund-related operations; (g) ICMI’s and the Sub-Advisers’ risk management, compliance programs and, if applicable, a description of the material changes made to, and material compliance violations of, the compliance program; (h) ICMI’s and the Sub-Advisers’ reputation, expertise and resources in domestic and/or international financial markets; and (i) each Penn Series Fund’s performance compared with similar mutual funds, other types of accounts and benchmark indices. In evaluating the advisory fees charged by ICMI, the Board reviewed both Lipper Analysis, which provided unbiased and non-consultative fee, expense and investment performance information based on asset size comparability, and ICMI’s internal analysis regarding ICMI’s total fund expense ratios and advisory fees compared to those of ICMI’s direct competitors.

At the meeting, representatives from ICMI commented on the information delivered to the Board and answered questions from Board members to help the Board evaluate ICMI’s and the Sub-Advisers’ fees and other aspects of the Investment Advisory Agreements. The Directors discussed the written materials that the Board received before the meeting, and deliberated on the renewal of the Investment Advisory Agreements in light of this information. The Board also considered its extensive review of advisory fee schedules, asset level breakpoints, and peer comparisons that took place at the November 13, 2013 meeting, including its review of the impact of advisory fees on the profitability of ICMI and the Sub-Advisers. The Board, including the Independent Directors, unanimously approved new or modified advisory fee rate schedules for over half of the Penn Series Funds at the November 13, 2013 meeting, subject to shareholder approval, which was achieved at a shareholder meeting on February 13, 2014.

At the May 15, 2014 meeting of the Board, the Directors, including the Independent Directors, unanimously approved the Investment Advisory Agreements and approved the selection of ICMI and the Sub-Advisers to act in their respective capacities for the Funds. The Board’s approval was based on its consideration and evaluation of a variety of specific factors discussed at the meeting and at prior meetings during the year, including:

• the nature, extent and quality of the services provided to the Penn Series Funds under the Investment Advisory Agreements, including the resources of ICMI and the Sub-Advisers dedicated to the Penn Series Funds;

• each Penn Series Fund’s investment performance and how it compared to that of other comparable mutual funds and appropriate benchmarks/indices;

• the fees charged to each Penn Series Fund under each Investment Advisory Agreement and how those fees compared to those of other comparable mutual funds and other types of accounts;

• the cost of services provided by and the profitability of ICMI and the Sub-Advisers with respect to each Penn Series Fund, including both direct and indirect benefits accruing to ICMI and the Sub-Advisers and their affiliates, if any; and

• the extent to which economies of scale would be realized as the Penn Series Funds grow and whether fee levels in the Investment Advisory Agreements reflect those economies of scale for the benefit of fund investors.

Nature, Extent and Quality of Services. The Directors considered the nature, extent and quality of the services provided by ICMI and the Sub-Advisers to the Penn Series Funds and the resources of ICMI and the Sub-Advisers dedicated to the Funds. In this regard, the Directors evaluated, among other things, ICMI’s and the Sub-Advisers’ business, personnel, experience,

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investment decision process, past performance, brokerage practices, including soft dollar practices, any conflicts of interest, compliance program and resources to be dedicated to each Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by ICMI and the Sub-Advisers to the Penn Series Funds and the resources of ICMI and the Sub-Advisers dedicated to the Penn Series Funds supported renewal of the Investment Advisory Agreements.

Fund Performance. The Directors considered fund performance in determining whether to renew the Investment Advisory Agreements. Specifically, the Directors considered each Penn Series Fund’s recent and long-term performance relative to its peer group and appropriate indices/benchmarks, in light of total return, yield and economic and market trends. In evaluating performance, the Directors considered both market risk and shareholder risk expectations for a given Penn Series Fund. The Board also considered its discussions with ICMI regarding the underperformance of those Sub-Advisers on ICMI’s “watchlist.” Based on this evaluation, the Board concluded, within the context of its full deliberations, that the performance of the Penn Series Funds (both actual performance and comparable performance) supported renewal of the Investment Advisory Agreements.

Costs of Advisory and Sub-Advisory Services. The Directors considered the costs of the advisory and sub-advisory services provided to the Penn Series Funds by ICMI and the Sub-Advisers, respectively. The Board evaluated (a) the advisory and sub-advisory services provided; (b) the advisory and sub-advisory fees paid, including in particular the breakpoint schedules; (c) the advisory and sub-advisory fees paid in comparison to the advisory and sub-advisory fees charged to other comparable mutual funds, including, in particular, mutual funds acting as underlying investments for insurance products, and other types of comparable accounts; and (d) the fact that the Sub-Advisers are compensated by ICMI and not by the Fund directly and that such compensation reflects an arms-length negotiation between each Sub-Adviser and ICMI. The Directors also considered ICMI and its affiliates’ agreement to waive management and other fees to prevent total fund expenses from exceeding a specified cap and that ICMI, through waivers, have maintained the Penn Series Funds’ net operating expenses at competitive levels for their distribution channel. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the advisory and sub-advisory fees charged to the Penn Series Funds are reasonable and supported renewal of the Investment Advisory Agreements.

Profitability. With regard to profitability, the Directors considered all compensation flowing, directly or indirectly, to ICMI and the Sub-Advisers and their affiliates, if any, from their relationship with the Penn Series Funds, including any benefits derived or to be derived by ICMI and the Sub-Advisers, such as soft dollar arrangements, as well as the cost of services provided to the Penn Series Funds. The Directors considered whether the varied levels of compensation and profitability under the Investment Advisory Agreements were reasonable and justified in light of the quality of all services rendered to the Penn Series Funds by ICMI and the Sub-Advisers and their affiliates, if any. When considering the profitability of the Sub-Advisers with respect to the sub-advisory services they provide to the Penn Series Funds, the Board took into account the fact that the Sub-Advisers are compensated by ICMI, and not by the Penn Series Funds directly, and such compensation with respect to any Sub-Adviser reflects an arms-length negotiation between the Sub-Adviser and ICMI. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of ICMI and the Sub-Advisers is reasonable in relation to the quality of their respective services and supported renewal of the Investment Advisory Agreements.

Economies of Scale. The Directors considered the existence of any economies of scale and whether such economies of scale were passed along to a Penn Series Fund’s shareholders through breakpoints or other means, including any fee waivers by ICMI and its affiliates or the Sub-Advisers. The Board also discussed tiered advisory fee schedules added to many of the Penn Series Funds effective May 1, 2014. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Penn Series Funds and their shareholders obtain a reasonable benefit from any economies of scale being realized by ICMI and the Sub-Advisers.

Based on the Directors’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Directors, unanimously approved the continuation of the Investment Advisory Agreements and concluded that the compensation under the Investment Advisory Agreements is fair and reasonable in light of such services and such other matters as the Directors considered to be relevant in the exercise of their reasonable judgment. In the course of their deliberations, the Directors did not identify any particular information that was all-important or controlling.

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^© 2014 The Penn Mutual Life Insurance Company and The Penn Insurance & Annuity Company, Philadelphia, PA 19172 www.pennmutual.com

PM5973 08/14

Item 2. Code of Ethics

Not Applicable

Item 3. Audit Committee Financial Expert

Not Applicable

Item 4. Principal Accountant Fees and Services

Not Applicable

Item 5. Audit Committee of Listed Registrants

Not Applicable

Item 6. Schedule of Investments

The schedule is included as part of the report to shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not Applicable

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not Applicable

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not Applicable

Item 10. Submission of Matters to a Vote of Security Holders

The Board of Directors of the Company has a Nominating Committee currently consisting of Mr. Bay, Mr. MacKinlay, Ms. Matthias and Ms. Mack. The principal responsibility of the Nominating Committee is to consider the qualifications of and to nominate qualified individuals to stand for election to the Board. The Nominating Committee has adopted a charter governing its operations. The Nominating Committee would consider nominees recommended by shareholders, if such nominations were submitted in writing and addressed to the Nominating Committee at the Company’s office in conjunction with a shareholder meeting to consider the election of Directors.

The Nominating Committee may adopt from time to time specific, minimum qualifications that the Nominating Committee believes a director candidate must meet before being considered as a candidate. Currently, there are no minimum qualifications set forth by the Nominating Committee other than with respect to an independent director candidate’s independence from the investment advisers and other principal service providers for the Company.

In identifying potential nominees to the Board, the Nominating Committee considers candidates recommended by any of the following sources: (i) the current Directors; (ii) the Company’s officers; (iii) investment advisers to the Funds; (iv) shareholders; and (v) any other source the Nominating Committee deems appropriate. The Nominating Committee will take into account a wide variety of criteria in considering candidates including the following criteria: (i) knowledge in matters relating to the investment company industry; (ii) any experience as a director or senior officer of public companies; (iii) educational background; (iv) reputation for high ethical standards and personal and professional integrity; (v) any specific financial, technical or other expertise and the extent to which such expertise would complement the Board’s existing mix of skills and qualifications; (vi) the perceived ability to contribute to the ongoing functions of the Board; (vii) the ability to qualify as an independent director; and (viii) such other criteria as the Nominating Committee determines to be relevant. The Nominating Committee will consider and evaluate candidates nominated by shareholders on the basis of the same criteria used to consider and evaluate candidates recommended by other sources.

Item 11. Controls and Procedures

(a) The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a)	(1)	Code of ethics – not applicable to this semi-annual report.
	(2)	Separate certification of Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached.
(b)		Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, are attached. These certifications are being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and are not filed as part of the Form N-CSR with the commission.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Penn Series Funds, Inc.
/s/ David M. O’Malley
By:	David M. O’Malley
	President
Date:	September 5, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ David M. O’Malley
By:	David M. O’Malley
	President
Date:	September 5, 2014
/s/ Robert J. DellaCroce
By:	Robert J. DellaCroce
	Treasurer
Date:	September 5, 2014